Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis 9 a result of the Entergy Louisiana and Entergy Gulf States Louisiana business combination, results of operations for 2015 also include two items that occurred in October 2015: 1) a deferred tax asset and resulting net increase in tax basis of approximately $334 million and 2) a regulatory liability of $107 million ($66 million net-of-tax) as a result of customer credits to be realized by electric customers of Entergy Louisiana, consistent with the terms of the stipulated settlement in the business combination proceeding.
See Note 2 to the financial statements for further discussion of the business combination and customer credits.
Results of operations for 2015 also include the sale in December 2015 of the 583 MW Rhode Island State Energy Center for a realized gain of $154 million ($100 million net-of-tax) on the sale and the $77 million ($47 million net-of-tax) write-off and regulatory charges to recognize that a portion of the assets associated with the Waterford 3 replacement steam generator project is no longer probable of recovery.
See Note 14 to the financial statements for further discussion of the Rhode Island State Energy Center sale.
See Note 2 to the financial statements for further discussion of the Waterford 3 write-off.
Results of operations for 2014 include $154 million ($100 million net-of-tax) of charges related to Vermont Yankee primarily resulting from the effects of an updated decommissioning cost study completed in the third quarter 2014 along with reassessment of the assumptions regarding the timing of decommissioning cash flows and severance and employee retention costs.
See Note 14 to the financial statements for further discussion of the charges.
Results of operations for 2014 also include the $56.2 million ($36.7 million net-of-tax) write-off in 2014 of Entergy Mississippi’s regulatory asset associated with new nuclear generation development costs as a result of a joint stipulation entered into with the Mississippi Public Utilities Staff, subsequently approved by the MPSC, in which Entergy Mississippi agreed not to pursue recovery of the costs deferred by an MPSC order in the new nuclear generation docket.
See Note 2 to the financial statements for further discussion of the new nuclear generation development costs and the joint stipulation.
Net Revenue Utility Following is an analysis of the change in net revenue comparing 2015 to 2014.
## Table 0 ##
The retail electric price variance is primarily due to: ?
formula rate plan increases at Entergy Louisiana, as approved by the LPSC, effective December 2014 and January 2015; ?
an increase in energy efficiency rider revenue primarily due to increases in the energy efficiency rider at Entergy Arkansas, as approved by the APSC, effective July 2015 and July 2014, and new energy efficiency riders at Entergy Louisiana and Entergy Mississippi that began in the fourth quarter 2014; and ?
an annual net rate increase at Entergy Mississippi of $16 million, effective February 2015, as a result of the MPSC order in the June 2014 rate case.
See Note 2 to the financial statements for a discussion of rate and regulatory proceedings.
combination, results of operations for 2015 also include two items that occurred in October 2015: 1) a deferred tax asset and resulting net increase in tax basis of approximately $334 million and 2) a regulatory liability of $107 million ($66 million net-of-tax) as a result of customer credits to be realized by electric customers of Entergy Louisiana, consistent with the terms of the stipulated settlement in the business combination proceeding.
See Note 2 to the financial statements for further discussion of the business combination and customer credits.
Results of operations for 2015 also include the sale in December 2015 of the 583 MW Rhode Island State Energy Center for a realized gain of $154 million ($100 million net-of-tax) on the sale and the $77 million ($47 million net-of-tax) write-off and regulatory charges to recognize that a portion of the assets associated with the Waterford 3 replacement steam generator project is no longer probable of recovery.
See Note 2 to the financial statements for further discussion of the Waterford 3 write-off.
The business of the Utility operating companies is subject to seasonal fluctuations with the peak periods occurring during the third quarter.
Operating results for the Registrant Subsidiaries for the four quarters of 2016 and 2015 were:
## Table 1 ##
Operating Income (Loss)
## Table 2 ##
Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy
## Table 3 ##
The Registrant Subsidiaries accrue interest expense related to unrecognized tax benefits in income tax expense and do not include it in fixed charges.
Entergy Wholesale Commodities Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants, located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers.
Entergy Wholesale Commodities revenues are primarily derived from sales of energy and generation capacity from these plants.
Entergy Wholesale Commodities also provides operations and management services, including decommissioning services, to nuclear power plants owned by other utilities in the United States.
Entergy Wholesale Commodities also includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers.
On December 29, 2014, Entergy Wholesale Commodities’Vermont Yankee plant was removed from the grid, after 42 years of operations.
The decision to close and decommission Vermont Yankee was announced in August 2013, as a result of numerous issues including sustained low natural gas and wholesale energy prices, the high cost structure of the plant, and lack of a market structure that adequately compensates merchant nuclear plants for their environmental and fuel diversity benefits in the Northeast region.
In November 2016, Entergy entered into an agreement to sell 100% of the membership interest in Entergy Nuclear Vermont Yankee, LLC to a subsidiary of NorthStar Group Services, Inc.  (NorthStar).
Entergy Nuclear Vermont Yankee is the owner of the Vermont Yankee plant.
The sale of Entergy Nuclear Vermont Yankee to NorthStar will include the transfer of Entergy Nuclear Vermont Yankee’s nuclear decommissioning trust fund and the asset retirement obligation for spent fuel management and decommissioning of the plant.
Entergy plans to transfer all spent nuclear fuel to dry cask storage by the end of 2018, subject to obtaining necessary regulatory approvals, in advance of the planned transaction close.
Under the sale agreement and related agreements to be entered into at the closing, NorthStar will commit to initiate decommissioning and site restoration by 2021 and complete those activities, along with the partial restoration of the Vermont Yankee site, with the exception of the independent spent fuel storage installation and the switchyard, by 2030.
The original completion date, as outlined in Entergy’s Post Shutdown Decommissioning Activities Report filed with the NRC, was 2075.
The transaction is contingent upon certain closing conditions, including approval by the NRC; approval by the State of Vermont Public Service Board, including approval of site restoration standards that will be proposed as part of the transaction; the transfer of all spent nuclear fuel to dry fuel storage on the independent spent fuel storage installation; and that the market value of the fund assets held in the decommissioning trust fund for the Vermont Yankee Nuclear Power Station, less the hypothetical income tax on the aggregate unrealized net gain of such fund assets at closing, is equal to or exceeds $451.95 million, subject to adjustments.
In October 2015, Entergy determined that it would close the FitzPatrick plant earlier than expected.
The original expectation was to shut down the FitzPatrick plant at the end of its fuel cycle in January 2017, but in August 2016, Entergy entered into an agreement to sell the FitzPatrick plant to Exelon, and the sale is expected to close in the first half of 2017.
The transaction is contingent upon, among other things, the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of necessary regulatory approvals from the FERC, the NRC, and the Public Service Commission of the State of New York (NYPSC), and the receipt of a private letter ruling from the IRS.
NRC approval has not yet been received, but all other necessary regulatory approvals have been received.
Because certain specified conditions were satisfied in November 2016
Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis 15 Entergy Wholesale Commodities includes the ownership of the following nuclear reactors

<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2014 net revenue</td><td>$5,735</td></tr><tr><td>Retail electric price</td><td>187</td></tr><tr><td>Volume/weather</td><td>95</td></tr><tr><td>Waterford 3 replacement steam generator provision</td><td>-32</td></tr><tr><td>MISO deferral</td><td>-35</td></tr><tr><td>Louisiana business combination customer credits</td><td>-107</td></tr><tr><td>Other</td><td>-14</td></tr><tr><td>2015 net revenue</td><td>$5,829</td></tr></table>
<table><tr><td></td><td>Entergy Arkansas</td><td>Entergy Louisiana</td><td>Entergy Mississippi</td><td>Entergy New Orleans</td><td>Entergy Texas</td><td>System Energy</td></tr><tr><td></td><td colspan="6">(In Thousands)</td></tr><tr><td>2016:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$465,373</td><td>$955,145</td><td>$263,046</td><td>$149,340</td><td>$378,304</td><td>$137,693</td></tr><tr><td>Second Quarter</td><td>$504,252</td><td>$999,034</td><td>$248,138</td><td>$164,920</td><td>$412,922</td><td>$151,323</td></tr><tr><td>Third Quarter</td><td>$654,599</td><td>$1,249,452</td><td>$309,739</td><td>$201,336</td><td>$442,085</td><td>$114,039</td></tr><tr><td>Fourth Quarter</td><td>$462,384</td><td>$973,417</td><td>$273,726</td><td>$149,867</td><td>$382,308</td><td>$145,236</td></tr><tr><td>2015:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$511,253</td><td>$1,069,191</td><td>$360,815</td><td>$156,626</td><td>$411,211</td><td>$156,039</td></tr><tr><td>Second Quarter</td><td>$551,809</td><td>$1,074,598</td><td>$344,975</td><td>$160,752</td><td>$402,921</td><td>$163,101</td></tr><tr><td>Third Quarter</td><td>$714,353</td><td>$1,298,482</td><td>$410,743</td><td>$209,733</td><td>$498,249</td><td>$155,899</td></tr><tr><td>Fourth Quarter</td><td>$476,149</td><td>$974,875</td><td>$280,452</td><td>$144,335</td><td>$394,822</td><td>$157,366</td></tr></table>
<table><tr><td></td><td>Entergy Arkansas</td><td>Entergy Louisiana</td><td>Entergy Mississippi</td><td>Entergy New Orleans</td><td>Entergy Texas</td><td>System Energy</td></tr><tr><td></td><td colspan="6">(In Thousands)</td></tr><tr><td>2016:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$54,378</td><td>$181,618</td><td>$41,573</td><td>$21,880</td><td>$41,269</td><td>$47,466</td></tr><tr><td>Second Quarter</td><td>$73,447</td><td>$193,752</td><td>$61,890</td><td>$26,913</td><td>$58,039</td><td>$45,020</td></tr><tr><td>Third Quarter</td><td>$188,660</td><td>$312,951</td><td>$88,312</td><td>$42,279</td><td>$107,964</td><td>$43,886</td></tr><tr><td>Fourth Quarter</td><td>$29,843</td><td>$111,066</td><td>$32,464</td><td>$8,807</td><td>$38,338</td><td>$44,781</td></tr><tr><td>2015:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$36,656</td><td>$185,776</td><td>$54,839</td><td>$20,745</td><td>$44,013</td><td>$47,784</td></tr><tr><td>Second Quarter</td><td>$55,149</td><td>$191,068</td><td>$58,086</td><td>$20,154</td><td>$44,064</td><td>$45,470</td></tr><tr><td>Third Quarter</td><td>$109,236</td><td>$294,436</td><td>$74,264</td><td>$34,734</td><td>$86,624</td><td>$47,135</td></tr><tr><td>Fourth Quarter</td><td>-$21,635</td><td>$47,052</td><td>$24,717</td><td>$9,337</td><td>$8,944</td><td>$45,239</td></tr></table>
<table><tr><td></td><td colspan="5">Ratios of Earnings to Combined FixedCharges and Preferred Dividends or DistributionsYears Ended December 31,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Entergy Arkansas</td><td>3.09</td><td>1.85</td><td>2.76</td><td>3.25</td><td>3.36</td></tr><tr><td>Entergy Louisiana</td><td>3.57</td><td>3.24</td><td>3.28</td><td>3.14</td><td>2.47</td></tr><tr><td>Entergy Mississippi</td><td>3.71</td><td>3.34</td><td>3.00</td><td>2.97</td><td>2.59</td></tr><tr><td>Entergy New Orleans</td><td>4.30</td><td>4.50</td><td>3.26</td><td>1.70</td><td>2.63</td></tr></table>

Question: Which year is Entergy Louisiana in Second Quarter the most?
Answer: 2016