Entergy Corporation (Entergy) has reported operating revenues of $13.1 billion for the year-end 2008, up 14%, compared with the operating revenues of $11.5 billion in the previous year-end. It has also reported a net income of $1.22 billion, or $6.23 per diluted share, for the year-end 2008, compared with the earnings of $1.13 billion, or $5.60 per diluted share, in the previous year-end.

Entergy reported fourth quarter 2008 as-reported earnings of $170.6 million, or 89 cents per share, compared with $193.9 million, or 96 cents per share, for fourth quarter 2007. On an operational basis, Entergy’s fourth quarter 2008 earnings were $190.7 million, or 99 cents per share, compared with $225.9 million, or $ 1.12 per share, in fourth quarter 2007.

Operational Earnings Highlights for Fourth Quarter 2008:

Utility, Parent & Other results were lower with higher income tax expense and regulatory charges as the primary contributors to the decrease.

Entergy Nuclear earnings increased as a result of higher power prices and lower income tax expense.

Entergy’s Non-Nuclear Wholesale Assets business reported earnings equal to last year’s results.

The challenges presented by the current world-wide economic crisis are formidable. But, as a point-of-view company, said J. Wayne Leonard, Entergy’s chairman and chief executive officer, we have the processes and the mentality to change direction to seize unexpected opportunities or adapt quickly to changed circumstances to protect our stakeholders. Our disciplined approach to warehousing risk, our strong liquidity position and past success in such times all give us valid reasons to be optimistic.

Other Business Highlights

Entergy received a special Award of Excellence at the tenth Annual Platt’s Global Energy Awards for its extraordinary track record of standout performance year after year over the past decade.

Entergy Nuclear closed out the year achieving the highest level of generating output since Entergy ownership.

Enexus executed a $1.2 billion credit facility in December and Entergy Texas successfully issued $500 million of 10-year first mortgage bonds in January, signaling access to and improvement in the credit markets.

Utility, Parent & Other

In fourth quarter 2008, the Utility, Parent & Other incurred losses of $82.6 million, or 43 cents per share, on an as-reported basis and $62.5 million, or 33 cents per share, on an operational basis, compared to earnings of $25.1 million, or 12 cents per share, on an as-reported basis and $38.8 million, or 19 cents per share, on an operational basis in fourth quarter 2007. Operational results for Utility, Parent & Other in fourth quarter 2008 reflect higher income tax expense associated with the effect of annual income tax adjustments occurring in fourth quarter each year across the Entergy companies. Also, costs previously accumulated in Entergy Arkansas, Inc.’s storm reserve and removal costs associated with the termination of a lease were not approved for recovery by the Arkansas Public Service Commission (APSC). In a subsequent appeal of this decision, the Arkansas Court of Appeals in December 2008 upheld almost all aspects of the APSC decision, including non-recovery of these costs. Considering the progress of this proceeding, Entergy Arkansas recorded a charge associated with these costs in fourth quarter although it continues to appeal the APSC decision in a petition filed before the Arkansas Supreme Court. In addition, results in fourth quarter 2008 reflect milder than normal weather compared to the warmer than normal weather that contributed to results in fourth quarter 2007.

Megawatt-hour sales in the residential sector in fourth quarter 2008, on a weather-adjusted basis, showed a 0.2 % increase compared to fourth quarter 2007. Commercial and governmental sales, after adjusting for weather, decreased 0.5 % year over year. Industrial sales in the current quarter reflected an 11.3 % decrease compared to fourth quarter 2007.

The residential sales sector showed a slight increase while the commercial and governmental sector reflected a slight decrease quarter to quarter as the continued weakening in the economy and carryover effect of third quarter storms affected customer usage across these sectors. Sales in the industrial sector for fourth quarter 2008 decreased significantly compared to the same quarter of 2007 primarily due to September hurricane outages being reflected in October sales, as industrial sales are typically billed in the beginning of the month following usage. Industrial sales were further depressed, as the overall sluggish economy worsened. Lower usage was seen across the industrial sector affecting both the large industrial segment as well as the small and mid-sized customers served.

For the year 2008, Utility, Parent & Other earned $422 million, or $2.15 per share, on an as-reported earnings basis, compared to $540.9 million, or $2.67 per share, in 2007. Operational earnings in 2008 were $477.4 million, or $2.43 per share, compared to $554.6 million, or $2.74 per share, in 2007. The lower operational earnings in 2008 were driven by lower net revenues due to outages associated with hurricanes Gustav and Ike as well as milder than normal weather. In addition, increased non-fuel operation and maintenance, and depreciation expense contributed to lower results. The increase in operation and maintenance expense was due primarily to regulatory charges recorded in 2008 associated with proceedings at Entergy Arkansas, Inc., while the higher depreciation expense was primarily due to increased plant in service and an adjustment to align book and regulatory depreciation in the current year, as well as the absence of an adjustment to depreciation made in 2007 in connection with storm settlements. These items were partially offset by the accretion associated with Entergy’s share repurchase program.

Entergy Nuclear

Entergy Nuclear earned $226.6 million, or $1.18 per share, on as-reported and operational bases in fourth quarter 2008, compared to $141.4 million, or 70 cents per share, on an as-reported basis and $159.8 million, or 79 cents per share on an operational basis in fourth quarter 2007. Entergy Nuclear’ increased primarily as a result of higher power prices and lower income tax.

For the year 2008, Entergy Nuclear earned $797.3 million, or $4.07 per share, on both as-reported and operational bases, compared with $539.2 million, or $ 2.66 per share, on an as-reported basis and $557.6 million, or $2.75 per share, on an operational basis in 2007. The increase in 2008 operational earnings was due primarily to increased revenue from higher pricing and higher generation due to the inclusion of Palisades in the fleet for the full year and fewer outage days, lower income taxes and accretion associated with Entergy’ repurchase program. These items were partially offset by higher expenses from the full year of Palisades operation, higher depreciation due to plant additions, and lower interest and dividend income reflecting impairments recorded on decommissioning investments.

Non-Nuclear Wholesale Assets

Non-Nuclear Wholesale Assets business had earnings of $26.5 million, or 14 cents per share, on both as-reported and operational bases in fourth quarter 2008 compared to $27.4 million, or 14 cents per share, in fourth quarter 2007. Income tax benefits were the primary earnings drivers in both quarters. In the fourth quarter of 2008, a closing agreement was reached with the Internal Revenue Service allowing a capital loss. As a result, a provision for tax uncertainties that existed on this item was reversed.

For the year 2008, Entergy’s Non-Nuclear Wholesale Assets business earned $1.3 million, or one cent per share, on as-reported and operational bases compared to earnings of $54.8 million, or 27 cents per share, on as-reported and operational bases in 2007. The decrease in operational earnings in 2008 is due primarily to higher income tax expense resulting from the absence of benefits associated with the resolution of tax audit issues in 2007 and higher tax expense from the redemption of an investment in 2008.