Entergy Louisiana LLC Q1 FY2024 earnings call

Customer-Centric Efforts

• Recognized with EEI's Outstanding National Key Accounts Customer Engagement Award for customer-centric progress.
• Signed 8 new electric service agreements with industrial customers, adding ~1.1 gigawatts of new load and over $150 million of annual adjusted gross margin.

Nuclear Fleet

• All nuclear plants in Column 1 of the NRC Action Matrix. Waterford 3 recovering from transformer failure with interim solution; Grand Gulf completed shortest refueling outage since 2007.

Regulatory Developments

• System Energy reached $116 million agreement in principle with New Orleans City Council, resolving ~85% SERI litigation risk.
• Louisiana Public Service Commission approved $1.9 billion resilience and grid hardening plan over 5 years. Entergy New Orleans filed updated resilience plan.
• Gas LDC sale on track to close by Q3 2025. Entergy Mississippi filed annual FRP with interim rates effective April 1.

Analyst Day

• Upcoming in June to detail multiyear strategy, customer growth, clean energy portfolio, reliability, resilience, and customer affordability.

In the first quarter, adjusted earnings per share were $1.08. Operating cash flow was $521 million, lower than the previous year due to factors like deferred fuel collections. Depreciation expense was higher due to customer investments. Retail sales were affected by mild weather, with industrial sales down 0.6% quarter-over-quarter due to lower sales to cogeneration customers.

Full-Year Outlook

• Remain on track to achieve 2024 results in line with guidance. Weather and lower sales to cogeneration customers were headwinds but offset by sales to additional industrial customers.
• Affirm longer-term adjusted EPS outlook of 6%-8% growth. O&M expected to balance out over the year despite quarterly variability.

• Operational risk: Waterford 3 faced transformer failure; operational excellence needed daily.
• Litigation risk: SERI litigation risk still present with some proceedings ongoing.
• Regulatory risk: Uncertainties in FRP and rate case processes in Louisiana.

Q: Updated thoughts around the CapEx plan given resiliency and additional industrial customers?

A: $1.9 billion approved for Louisiana, with ~$1.5 billion in the 3-year period, an incremental $700 million for Louisiana. Details to be updated at Analyst Day.

Q: SERI settlement prospects?

A: ~85% of SERI risk resolved, pursuing settlement with Louisiana, and no barriers to settling both state and federal issues.

Q: Texas resiliency filing?

A: Filing in Q2, influenced by state grants and credit mechanisms, with considerations around contribution from state grants and credit impact.

Q: Data center T&D tariffs?

A: Ensure pricing of data center customers supports infrastructure build and protects other customers, with similar approach to Mississippi's legislation for future data centers.