The Company sees value in owning coal-fired generation in regions where mandates would affect the market despite the uncertainties related to potential environmental regulation (EPA) and/or legislation.  It would also consider renewable generation and/or natural gas generation around its current assets.

Capital Deployment

Entergy continues to see productive investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Nuclear that supports continued safe, secure and reliable operations and opportunistic investments.  The Company aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program.  Given the Company's financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases.  Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $5.0 billion over the next five years under the current long-term business outlook.  The amount of share repurchases may vary as a result of material changes in business results or capital spending or new investment opportunities.

Financial Implications

In connection with the business unwind, the Company expects a total potential charge in the range of $0.40-$0.45 per share to reflect the write-off of capitalized costs incurred to date and certain other costs to be recorded in accordance with generally accepted accounting principles.  The charge would be reported as a special item.  This charge also includes the previously identified special items for spinoff dis-synergies and expenses for outside services provided to pursue the spinoff in 2010.  The Company will immediately take steps to eliminate spinoff dis-synergies as soon as possible during 2010.

Entergy had viewed the spinoff as the most efficient way to capture value and to appropriately finance the assets. The firms expect ETR to issue debt at the parent level, which could result in credit rating downgrades.  They expect some increase in balance sheet leverage, although remain uncertain as to the specific method.  Stock buybacks remain a distinct possibility.