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Risk Management And Fair Values (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Inputs Liabilities Quantitative Information
The following table sets forth a description of the types of transactions classified as Level 3 in the fair value hierarchy and significant unobservable inputs to each which cause that classification, as of December 31, 2016:
Transaction Type
 
Fair Value as of December 31, 2016
 
Significant Unobservable Inputs
 
Range from Average %
 
Effect on Fair Value
 
 
(In Millions)
 
 
 
 
 
(In Millions)
Power contracts - electricity swaps
 
$5
 
Unit contingent discount
 
+/-4%
 
$—
Fair Values Of Derivative Instruments
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2016 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Offset (b)
 
Net (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$25
 
($14)
 
$11
 
Entergy Wholesale Commodities
Electricity swaps and options

Other deferred debits and other assets (non-current portion)
 
$6
 
($6)
 
$—
 
Entergy Wholesale Commodities
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$11
 
($10)
 
$1
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$16
 
($7)
 
$9
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$18
 
($13)
 
$5
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$5
 
($5)
 
$—
 
Entergy Wholesale Commodities
Natural gas swaps
 
Prepayments and other
 
$13
 
$—
 
$13
 
Utility
Financial transmission rights
 
Prepayments and other
 
$22
 
($1)
 
$21
 
Utility and Entergy Wholesale Commodities
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$18
 
($17)
 
$1
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$4
 
($4)
 
$—
 
Entergy Wholesale Commodities

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2015 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Offset (b)
 
Net (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$173
 
($34)
 
$139
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$17
 
($2)
 
$15
 
Entergy Wholesale Commodities
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$14
 
($14)
 
$—
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$2
 
($2)
 
$—
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$54
 
($13)
 
$41
 
Entergy Wholesale Commodities
Financial transmission rights
 
Prepayments and other
 
$24
 
($1)
 
$23
 
Utility and Entergy Wholesale Commodities
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$38
 
($32)
 
$6
 
Entergy Wholesale Commodities
Natural gas swaps
 
Other current liabilities
 
$9
 
$—
 
$9
 
Utility

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Entergy Consolidated Balance Sheets
(d)
Excludes cash collateral in the amount of $2 million posted as of December 31, 2016 and $9 million posted and $68 million held as of December 31, 2015.
Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income
The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated statements of operations for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Amount of gain recognized in other comprehensive income
 
Income Statement location
 
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (a)
 
 
(In Millions)
 
 
 
(In Millions)
2016
 
 
 
 
 
 
Electricity swaps and options
 
$135
 
Competitive business operating revenues
 
$293
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Electricity swaps and options
 
$254
 
Competitive business operating revenues
 
($244)
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Electricity swaps and options
 
$81
 
Competitive business operating revenues
 
($193)


(a)
Before taxes of $103 million, ($85) million, and ($68) million, for the years ended December 31, 2016, 2015, and 2014, respectively
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated statements of operations for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Amount of gain (loss) recognized in accumulated other comprehensive income
 
Income Statement location
 
Amount of gain (loss) recorded in the income statement
 
 
(In Millions)
 
 
 
(In Millions)
2016
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
$11
Financial transmission rights
 
$—
 
Purchased power expense
(b)
$125
Electricity swaps and options
 
$—
(c)
Competitive business operating revenues
 
($11)
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($41)
Financial transmission rights
 
$—
 
Purchased power expense
(b)
$166
Electricity swaps and options
 
$12
(c)
Competitive business operating revenues
 
($19)
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($8)
Financial transmission rights
 
$—
 
Purchased power expense
(b)
$229
Electricity swaps and options
 
($13)
(c)
Competitive business operating revenues
 
$56


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
(c)
Amount of gain (loss) recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items.
Assets and liabilities at fair value on a recurring basis
The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2016 and December 31, 2015.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels.

2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,058

 

$—

 

$—

 

$1,058

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
480

 
—

 
—

 
480

Debt securities
 
985

 
1,228

 
—

 
2,213

Common trusts (b)
 
 
 
 
 
 
 
3,031

Power contracts
 
—

 
—

 
16

 
16

Securitization recovery trust account
 
46

 
—

 
—

 
46

Escrow accounts
 
433

 
—

 
—

 
433

Gas hedge contracts
 
13

 
—

 
—

 
13

Financial transmission rights
 
—

 
—

 
21

 
21

 
 

$3,015

 

$1,228

 

$37

 

$7,311

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$11

 

$11


2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,287

 

$—

 

$—

 

$1,287

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
468

 
—

 
—

 
468

Debt securities
 
1,061

 
1,094

 
—

 
2,155

Common trusts (b)
 
 
 
 
 
 
 
2,727

Power contracts
 
—

 
—

 
195

 
195

Securitization recovery trust account
 
50

 
—

 
—

 
50

Escrow accounts
 
425

 
—

 
—

 
425

Financial transmission rights
 
—

 
—

 
23

 
23

 
 

$3,291

 

$1,094

 

$218

 

$7,330

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$6

 

$6

Gas hedge contracts
 
9

 
—

 
—

 
9

 
 

$9

 

$—

 

$6

 

$15


(a)
The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 16 to the financial statements for additional information on the investment portfolios.
(b)
Common trust funds are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the years ended December 31, 2016, 2015, and 2014:
 
2016
 
2015
 
2014
 
Power Contracts
Financial transmission rights
 
Power Contracts
Financial transmission rights
 
Power Contracts
Financial transmission rights
 
(In Millions)
Balance as of January 1,

$189


$23

 

$215


$47

 

($133
)

$34

Total gains (losses) for the period (a)
 
 
 
 
 
 
 
 
Included in earnings
(10
)
—

 
(20
)
(1
)
 
55

2

Included in OCI
135

—

 
254

—

 
131

—

Included as a regulatory liability/asset
—

68

 
—

63

 
—

119

Issuances of financial transmission rights
—

55

 
—

80

 
—

121

Purchases
—

—

 
15

—

 
17

—

Settlements
(309
)
(125
)
 
(275
)
(166
)
 
145

(229
)
Balance as of December 31,

$5


$21

 

$189


$23

 

$215


$47



(a)
Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is $0.2 million, $3 million, and $120 million for the years ended December 31, 2016, 2015, and 2014, respectively.
Entergy Arkansas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 and 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$7.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$2.4
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$2.2
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.0
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.3
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.5
 
Entergy New Orleans


(a)
As of December 31, 2016, letters of credit posted with MISO covered financial transmission right exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. No cash or letters of credit were required to be posted for financial transmission right exposure as of December 31, 2015.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain (loss) recorded in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$8.4
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$3.1
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$23.2
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$69.7
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.6
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$4.1
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$10.2
(b)
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($33.2)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$68.7
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$55.4
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$8.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$16.8
(b)
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.5)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($2.5)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$21.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$103.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$19.0
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$65.8
(b)
Entergy Texas

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
The following table sets forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets that are accounted for at fair value on a recurring basis as of December 31, 2016 and December 31, 2015.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels.

Entergy Arkansas
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$3.6

 

$—

 

$—

 

$3.6

Debt securities
 
112.5

 
196.8

 
—

 
309.3

Common trusts (b)
 
 
 
 
 
 
 
521.8

Securitization recovery trust account
 
4.1

 
—

 
—

 
4.1

Escrow accounts
 
7.1

 
—

 
—

 
7.1

Financial transmission rights
 
—

 
—

 
5.4

 
5.4

 
 

$127.3

 

$196.8

 

$5.4

 

$851.3



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$3.0

 

$—

 

$—

 

$3.0

Debt securities
 
110.5

 
193.4

 
—

 
303.9

Common trusts (b)
 
 
 
 
 
 
 
464.4

Securitization recovery trust account
 
4.2

 
—

 
—

 
4.2

Escrow accounts
 
12.2

 
—

 
—

 
12.2

Financial transmission rights
 
—

 
—

 
7.9

 
7.9

 
 

$129.9

 

$193.4

 

$7.9

 

$795.6
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2016.

Entergy Arkansas
 
Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas
 
(In Millions)

 
 











Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Issuances of financial transmission rights
18.8

 
18.1

 
5.9

 
2.8

 
9.3

Gains (losses) included as a regulatory liability/asset
1.9

 
51.6

 
11.5

 
0.9

 
1.8

Settlements
(23.2
)
 
(69.7
)
 
(16.6
)
 
(4.1
)
 
(10.2
)
Balance as of December 31,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2015.
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
(In Millions)
 
 
 
 
 
 
 
 
 
 
Balance as of January 1,

$0.7

 

$25.5

 

$3.4

 

$4.1

 

$12.3

Issuances of financial transmission rights
7.0

 
48.3

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
68.9

 
(9.9
)
 
10.1

 
(1.4
)
 
(4.7
)
Settlements
(68.7
)
 
(55.4
)
 
(16.5
)
 
(8.5
)
 
(16.8
)
Balance as of December 31,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2
Entergy Louisiana [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 and 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$7.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$2.4
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$2.2
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.0
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.3
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.5
 
Entergy New Orleans


(a)
As of December 31, 2016, letters of credit posted with MISO covered financial transmission right exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. No cash or letters of credit were required to be posted for financial transmission right exposure as of December 31, 2015.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain (loss) recorded in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$8.4
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$3.1
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$23.2
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$69.7
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.6
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$4.1
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$10.2
(b)
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($33.2)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$68.7
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$55.4
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$8.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$16.8
(b)
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.5)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($2.5)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$21.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$103.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$19.0
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$65.8
(b)
Entergy Texas

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Louisiana
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$163.9

 

$—

 

$—

 

$163.9

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
13.9

 
—

 
—

 
13.9

Debt securities
 
132.3

 
292.5

 
—

 
424.8

Common trusts (b)
 
 
 
 
 
 
 
702.0

Escrow accounts
 
305.7

 
—

 
—

 
305.7

Securitization recovery trust account
 
2.8

 
—

 
—

 
2.8

Gas hedge contracts
 
10.9

 
—

 
—

 
10.9

Financial transmission rights
 
—

 
—

 
8.5

 
8.5

 
 

$629.5

 

$292.5

 

$8.5

 

$1,632.5



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$34.8

 

$—

 

$—

 

$34.8

Decommissioning trust funds (a):
 
 

 
 

 
 

 
 

Equity securities
 
7.1

 
—

 
—

 
7.1

Debt securities
 
161.1

 
248.8

 
—

 
409.9

Common trusts (b)
 
 
 
 
 
 
 
625.3

Escrow accounts
 
290.4

 
—

 
—

 
290.4

Securitization recovery trust account
 
3.2

 
—

 
—

 
3.2

Financial transmission rights
 
—

 
—

 
8.5

 
8.5

 
 

$496.6

 

$248.8

 

$8.5

 

$1,379.2

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$7.0

 

$—

 

$—

 

$7.0
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2016.

Entergy Arkansas
 
Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas
 
(In Millions)

 
 











Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Issuances of financial transmission rights
18.8

 
18.1

 
5.9

 
2.8

 
9.3

Gains (losses) included as a regulatory liability/asset
1.9

 
51.6

 
11.5

 
0.9

 
1.8

Settlements
(23.2
)
 
(69.7
)
 
(16.6
)
 
(4.1
)
 
(10.2
)
Balance as of December 31,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2015.
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
(In Millions)
 
 
 
 
 
 
 
 
 
 
Balance as of January 1,

$0.7

 

$25.5

 

$3.4

 

$4.1

 

$12.3

Issuances of financial transmission rights
7.0

 
48.3

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
68.9

 
(9.9
)
 
10.1

 
(1.4
)
 
(4.7
)
Settlements
(68.7
)
 
(55.4
)
 
(16.5
)
 
(8.5
)
 
(16.8
)
Balance as of December 31,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2
Entergy Mississippi [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 and 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$7.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$2.4
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$2.2
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.0
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.3
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.5
 
Entergy New Orleans


(a)
As of December 31, 2016, letters of credit posted with MISO covered financial transmission right exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. No cash or letters of credit were required to be posted for financial transmission right exposure as of December 31, 2015.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain (loss) recorded in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$8.4
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$3.1
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$23.2
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$69.7
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.6
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$4.1
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$10.2
(b)
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($33.2)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$68.7
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$55.4
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$8.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$16.8
(b)
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.5)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($2.5)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$21.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$103.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$19.0
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$65.8
(b)
Entergy Texas

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Mississippi
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$76.8

 

$—

 

$—

 

$76.8

Escrow accounts
 
31.8

 
—

 
—

 
31.8

Gas hedge contracts
 
2.3

 
—

 
—

 
2.3

Financial transmission rights
 
—

 
—

 
3.2

 
3.2

 
 

$110.9

 

$—

 

$3.2

 

$114.1



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$144.2

 

$—

 

$—

 

$144.2

Escrow accounts
 
41.7

 
—

 
—

 
41.7

Financial transmission rights
 
—

 
—

 
2.4

 
2.4

 
 

$185.9

 

$—

 

$2.4

 

$188.3

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$1.3

 

$—

 

$—

 

$1.3
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2016.

Entergy Arkansas
 
Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas
 
(In Millions)

 
 











Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Issuances of financial transmission rights
18.8

 
18.1

 
5.9

 
2.8

 
9.3

Gains (losses) included as a regulatory liability/asset
1.9

 
51.6

 
11.5

 
0.9

 
1.8

Settlements
(23.2
)
 
(69.7
)
 
(16.6
)
 
(4.1
)
 
(10.2
)
Balance as of December 31,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2015.
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
(In Millions)
 
 
 
 
 
 
 
 
 
 
Balance as of January 1,

$0.7

 

$25.5

 

$3.4

 

$4.1

 

$12.3

Issuances of financial transmission rights
7.0

 
48.3

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
68.9

 
(9.9
)
 
10.1

 
(1.4
)
 
(4.7
)
Settlements
(68.7
)
 
(55.4
)
 
(16.5
)
 
(8.5
)
 
(16.8
)
Balance as of December 31,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2
Entergy New Orleans [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 and 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$7.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$2.4
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$2.2
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.0
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.3
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.5
 
Entergy New Orleans


(a)
As of December 31, 2016, letters of credit posted with MISO covered financial transmission right exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. No cash or letters of credit were required to be posted for financial transmission right exposure as of December 31, 2015.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain (loss) recorded in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$8.4
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$3.1
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$23.2
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$69.7
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.6
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$4.1
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$10.2
(b)
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($33.2)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$68.7
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$55.4
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$8.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$16.8
(b)
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.5)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($2.5)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$21.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$103.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$19.0
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$65.8
(b)
Entergy Texas

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy New Orleans
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$103.0

 

$—

 

$—

 

$103.0

Securitization recovery trust account
 
1.7

 
—

 
—

 
1.7

Escrow accounts
 
88.6

 
—

 
—

 
88.6

Gas hedge contracts
 
0.2

 
—

 
—

 
0.2

Financial transmission rights
 
—

 
—

 
1.1

 
1.1

 
 

$193.5

 

$—

 

$1.1

 

$194.6



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$87.8

 

$—

 

$—

 

$87.8

Securitization recovery trust account
 
4.6

 
—

 
—

 
4.6

Escrow accounts
 
81.0

 
—

 
—

 
81.0

Financial transmission rights
 
—

 
—

 
1.5

 
1.5

 
 

$173.4

 

$—

 

$1.5

 

$174.9

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$0.5

 

$—

 

$—

 

$0.5
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2016.

Entergy Arkansas
 
Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas
 
(In Millions)

 
 











Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Issuances of financial transmission rights
18.8

 
18.1

 
5.9

 
2.8

 
9.3

Gains (losses) included as a regulatory liability/asset
1.9

 
51.6

 
11.5

 
0.9

 
1.8

Settlements
(23.2
)
 
(69.7
)
 
(16.6
)
 
(4.1
)
 
(10.2
)
Balance as of December 31,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2015.
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
(In Millions)
 
 
 
 
 
 
 
 
 
 
Balance as of January 1,

$0.7

 

$25.5

 

$3.4

 

$4.1

 

$12.3

Issuances of financial transmission rights
7.0

 
48.3

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
68.9

 
(9.9
)
 
10.1

 
(1.4
)
 
(4.7
)
Settlements
(68.7
)
 
(55.4
)
 
(16.5
)
 
(8.5
)
 
(16.8
)
Balance as of December 31,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2
Entergy Texas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 and 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$7.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$2.4
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$2.2
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.0
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.3
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.5
 
Entergy New Orleans


(a)
As of December 31, 2016, letters of credit posted with MISO covered financial transmission right exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. No cash or letters of credit were required to be posted for financial transmission right exposure as of December 31, 2015.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the years ended December 31, 2016, 2015, and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain (loss) recorded in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$8.4
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$3.1
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$23.2
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$69.7
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.6
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$4.1
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$10.2
(b)
Entergy Texas
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($33.2)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.4)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$68.7
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$55.4
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$8.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$16.8
(b)
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.5)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($2.5)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power
 
$21.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power
 
$103.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power
 
$19.0
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power
 
$16.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power
 
$65.8
(b)
Entergy Texas

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Texas
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$5.0

 

$—

 

$—

 

$5.0

Securitization recovery trust account
 
37.5

 
—

 
—

 
37.5

Financial transmission rights
 
—

 
—

 
3.1

 
3.1

 
 

$42.5

 

$—

 

$3.1

 

$45.6



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Securitization recovery trust account
 

$38.2

 

$—

 

$—

 

$38.2

Financial transmission rights
 
—

 
—

 
2.2

 
2.2

 
 

$38.2

 

$—

 

$2.2

 

$40.4
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2016.

Entergy Arkansas
 
Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas
 
(In Millions)

 
 











Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Issuances of financial transmission rights
18.8

 
18.1

 
5.9

 
2.8

 
9.3

Gains (losses) included as a regulatory liability/asset
1.9

 
51.6

 
11.5

 
0.9

 
1.8

Settlements
(23.2
)
 
(69.7
)
 
(16.6
)
 
(4.1
)
 
(10.2
)
Balance as of December 31,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the year ended December 31, 2015.
 
Entergy Arkansas
 
Entergy Louisiana
 
Entergy Mississippi
 
Entergy New Orleans
 
Entergy Texas
 
(In Millions)
 
 
 
 
 
 
 
 
 
 
Balance as of January 1,

$0.7

 

$25.5

 

$3.4

 

$4.1

 

$12.3

Issuances of financial transmission rights
7.0

 
48.3

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
68.9

 
(9.9
)
 
10.1

 
(1.4
)
 
(4.7
)
Settlements
(68.7
)
 
(55.4
)
 
(16.5
)
 
(8.5
)
 
(16.8
)
Balance as of December 31,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2
System Energy [Member]  
Assets and liabilities at fair value on a recurring basis
System Energy
2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$245.1

 

$—

 

$—

 

$245.1

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
0.3

 
—

 
—

 
0.3

Debt securities
 
248.3

 
58.3

 
—

 
306.6

Common trusts (b)
 
 
 
 
 
 
 
473.6

 
 

$493.7

 

$58.3

 

$—

 

$1,025.6



2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$222.0

 

$—

 

$—

 

$222.0

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
1.8

 
—

 
—

 
1.8

Debt securities
 
218.6

 
59.2

 
—

 
277.8

Common trusts (b)
 
 
 
 
 
 
 
421.9

 
 

$442.4

 

$59.2

 

$—

 

$923.5