Entergy Louisiana, LLC COLLATERAL TR MT

What they do

Entergy Louisiana is a regulated electric utility that generates, transmits, and distributes electricity to retail and wholesale customers in Louisiana. Its operations are conducted under cost-of-service regulation by the Louisiana Public Service Commission and the FERC, with rates set through formula rate plans and other regulatory mechanisms. The company is one of several Utility operating companies within the Entergy Corporation system and participates in MISO.

Revenue drivers

• Regulated electricity sales — The company's principal revenue source is retail and wholesale electric sales under rates approved by the Louisiana Public Service Commission and FERC; electricity revenue is the dominant category in Entergy's consolidated revenue breakdown.
• Natural gas sales — Entergy Louisiana's natural gas distribution business is part of the combined Entergy New Orleans and Entergy Louisiana natural gas distribution businesses that were classified as held for sale as of December 31, 2024.
• Formula rate plan recovery — Formula rate plans allow the company to recover specified costs and earn a regulated return; Entergy Louisiana filed its annual formula rate plan and an extension request in 2026.

Recent performance

At the Entergy Corporation level, second quarter 2026 as-reported earnings were $483 million, or $1.03 per share, compared to $468 million, or $1.05 per share, in second quarter 2025; year-to-date 2026 as-reported earnings were $868 million, or $1.87 per share. The Utility segment reported second quarter 2026 earnings of $626 million, or $1.34 per share, versus $599 million, or $1.34 per share, a year earlier. Primary drivers of the Utility increase were regulatory actions across several operating companies, return on construction work in progress, higher retail sales volume, and higher other income. These were partly offset by higher interest expense, O&M, and depreciation and amortization.

Strategy

Entergy Louisiana is pursuing formula rate plan extensions and annual filings to stabilize and streamline cost recovery, as reflected in its 2026 filings for its annual formula rate plan and an extension. The company is part of Entergy's broader system strategy emphasizing customer growth, including large-scale data centers and other large customers, and investments in generation and transmission. Entergy Corporation completed a $2.175 billion common stock offering with a forward component in 2026, and Entergy Texas received an approximately $200 million Texas Energy Fund grant for electric reliability. Nuclear operations remain part of the system's generating portfolio, with River Bend Station celebrating 40 years of operation.

Risks

• Rate case and recovery risk — Delays or adverse outcomes in formula rate proceedings, rate cases, and fuel and purchased power cost recovery could affect Entergy Louisiana's ability to recover costs in a timely manner.
• MISO participation risk — The company faces regulatory and operating uncertainties from its participation in MISO, including market rule changes, allocation of transmission upgrade costs, and interconnection queue delays.
• Large-load growth uncertainty — Growth from data centers and other large customers carries risks that capital investments tied to expected load growth may not be recovered if those customers do not materialize, potentially creating stranded costs.
• Nuclear regulatory risk — Changes in regulation or oversight of Entergy's nuclear generating facilities and fuel could affect operations and costs for a system that relies on nuclear generation.

Outlook

Management stated at the Corporation level that it remains solidly on track to achieve its 2026 objectives and beyond, affirming guidance and outlooks. Entergy Louisiana continues its formula rate plan filings, including an extension request and annual formula rate plan, which are intended to support cost recovery and earnings stability. The company is also positioned within the system's broader customer growth and infrastructure investment plans, though specific financial guidance for Entergy Louisiana is not provided in the excerpts.