Market Study Reinforces Company’s Decision

LITTLE ROCK, Ark. – Entergy Arkansas, Inc’s proposed move to join the Midwest Independent Transmission System Operator, Inc., or MISO, got a boost recently from additional analysis that reinforces previously estimated benefits to its customers. The latest study prepared by Charles River & Associates, estimates that customers in the State of Arkansas would receive $93 million in trade benefits from the Entergy and Cleco regions joining MISO.  The study also shows that Southwest Power Pool’s members as a whole would receive trade benefits of at least $22 million following the Entergy and Cleco regions joining MISO.

Another finding in the recent study is that any additional congestion costs arising from Entergy Arkansas’s joining MISO should be very minimal and, in any event, will be offset by additional benefits.  Entergy Arkansas projected overall net benefits to its customers of $228 million from 2013 to 2022 by joining MISO by itself in its May 2011 filing with the Arkansas Public Service Commission.

“Extensive study has been done by numerous parties regarding the different options for Entergy Arkansas customers,” said Entergy Arkansas President and Chief Executive Officer Hugh McDonald. “The more analysis that is completed of Entergy Arkansas’ alternatives upon its exit from the System Agreement, the more it is evident that MISO brings the most benefits to our customers and to customers in the State of Arkansas as a whole.”

The Arkansas co-owners of the White Bluff and Independence Steam Electric Stations, a group that includes the Arkansas Electric Cooperative Corporation and the Cities of Jonesboro, Osceola, Conway and West Memphis filed documents in March acknowledging the benefits of participation in a “Day Two” market to all co-owner utilities.  Combined with Entergy Arkansas, these groups represent approximately eighty percent of all Arkansas electric customers.

Entergy Arkansas has been engaged in a lengthy planning process in preparation to exit its long-standing participation in the System Agreement with the other Entergy operating companies which ends in December 2013.

“It’s encouraging that analysis from different sources is validating our recommendation,” continued McDonald. “We are eager to move forward to implementation.”

Entergy Arkansas, Inc. provides electricity to more than 692,000 customers in 63 counties. It is a subsidiary of Entergy Corporation. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas.

In this news release, and from time to time, Entergy Arkansas, Inc. makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy Arkansas undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy Corporation’s Form 10-K for the year ended December 31, 2011; and (ii) Entergy Corporation’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy Corporation and its subsidiaries; (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings, and (g) risks inherent in the proposed spin-off and subsequent merger of Entergy Corporation’s electric transmission business into a subsidiary of ITC Holdings Corp. Entergy Corporation cannot provide any assurances that the spin-off and merger transaction will be completed and cannot give any assurance as to the terms on which such transaction will be consummated. The spin-off and merger transaction is subject to certain conditions precedent, including regulatory approvals and approval by ITC Holdings Corp. shareholders.