Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 214 Entergy Wholesale Commodities During 2010 Entergy integrated its non-utility nuclear and its non-nuclear wholesale assets businesses into a new organization called Entergy Wholesale Commodities.
Entergy Wholesale Commodities includes the ownership and operation of six nuclear power plants, five of which are located in the Northeast United States, with the sixth located in Michigan, and is primarily focused on selling electric power produced by those 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, or participation in joint ventures that own, non-nuclear power plants and the sale to wholesale customers of the electric power produced by these plants.
Property Nuclear Generating Stations Entergy Wholesale Commodities includes the ownership of the following nuclear power plants:
## Table 0 ##
Entergy Wholesale Commodities also includes the ownership of two non-operating nuclear facilities, Big Rock Point in Michigan and Indian Point 1 in New York that were acquired when Entergy purchased the Palisades and Indian Point 2 nuclear plants, respectively.
These facilities are in various stages of the decommissioning process.
The NRC operating license for Vermont Yankee was to expire in March 2012.
In March 2011 the NRC renewed Vermont Yankee’s operating license for an additional 20 years, as a result of which the license now expires in 2032.
For additional discussion regarding the continued operation of the Vermont Yankee plant, see “Impairment of Long-Lived Assets” in Note 1 to the financial statements.
The operating licenses for Pilgrim, Indian Point 2, and Indian Point 3 expire between 2012 and 2015.
Under federal law, nuclear power plants may continue to operate beyond their license expiration dates while their renewal applications are pending NRC approval.
Various parties have expressed opposition to renewal of the licenses.
With respect to the Pilgrim license renewal, the Atomic Safety and Licensing Board (ASLB) of the NRC, after issuing an order denying a new hearing request, terminated its proceeding on Pilgrim’s license renewal application.
With the ASLB process concluded the proceeding, including appeals of certain ASLB decisions, is now before the NRC.
In April 2007, Entergy submitted an application to the NRC to renew the operating licenses for Indian Point 2 and 3 for an additional 20 years.
The ASLB has admitted 21 contentions raised by the State of New York or other parties, which were combined into 16 discrete issues.
Two of the issues have been resolved, leaving 14 issues that are currently subject to ASLB hearings.
In July 2011, the ASLB granted the State of New York’s motion for summary disposition of an admitted contention challenging the adequacy of a section of Indian Point’s environmental analysis as incorporated in the FSEIS (discussed below).
That section provided cost estimates for Severe Accident Mitigation Alternatives (SAMAs), which are hardware and procedural changes that could be
2005 to 2004 Annual Comparison.
Total new annualized premiums increased $126 million, or 32%, from $398 million in 2004 to $524 million in 2005.
This increase in sales was due to higher group life sales to new clients, including a significant large case sale in the first quarter of 2005.
Investment Division Asset Management Operating Results The following table sets forth the Asset Management segment’s operating results for the periods indicated.
## Table 1 ##
(1) Revenues exclude Realized investment gains (losses), net, and related adjustments.
See “—Realized Investment Gains and General Account Investments—Realized Investment Gains.
” Adjusted Operating Income 2006 to 2005 Annual Comparison.
Adjusted operating income increased $129 million, from $464 million in 2005 to $593 million in 2006.
Results for 2006 benefited from an increase in performance based incentive fees of $61 million associated with appreciation and gains on sale of real estate investments which we manage, and from income from our proprietary investing business, also associated with appreciation and gains on sale of real estate related investments, including $23 million relating to a single investment in 2006.
Proprietary investing income in 2005 included $58 million relating to two sale transactions.
Results for 2006 benefited from increased asset management fees of $88 million, primarily from institutional and retail customer assets as a result of increased asset values due to market appreciation and net asset inflows.
Higher expenses, including performance-related compensation costs, partially offset the foregoing increases.2005 to 2004 Annual Comparison.
Adjusted operating income increased $198 million, from $266 million in 2004 to $464 million in 2005, which includes a $10 million increase from the management of assets associated with the retirement business acquired from CIGNA on April 1, 2004.
Results for 2005 benefited from an increase of $84 million in fees primarily from the management of institutional customer assets as a result of increased asset values due to net asset inflows during 2004 and 2005, as well as net market appreciation.
Improved results from our proprietary investing activities, including $58 million from two sale transactions completed in 2005, also contributed to the increase in adjusted operating income.
Results for 2005 benefited from an increase of $62 million in performance based incentive and transaction fees primarily related to our real estate investment management business.
Additionally, 2004 results include charges totaling $28 million related to declines in value of intangible assets, expenses incurred in exiting an operating facility and termination of activities related to certain of our international investment management operations.
Increased performance-related compensation costs in 2005 partially offset the foregoing factors.
Ongoing surveillance of the portfolio is performed and loans are placed on watch list status based on a predefined set of criteria.
We place loans on early warning status in cases where we detect that the physical condition of the property, the financial situation of the borrower or tenant or other market factors could lead to a loss of principal or interest.
We classify loans as closely monitored when there is a collateral deficiency or other credit events that will lead to a potential loss of principal or interest.
Loans not in good standing are those loans where there is a high probability of loss of principal, such as when the loan is in the process of foreclosure or the borrower is in bankruptcy.
In our domestic operations, our workout and special servicing professionals manage the loans on the watch list.
In our international portfolios, we monitor delinquency in consumer loans on a pool basis and evaluate any servicing relationship and guarantees the same way we do for commercial loans.
As of both December 31, 2006 and December 31, 2005, we held approximately 11% of our general account investments in commercial loans.
This percentage is net of a $0.1 billion allowance for losses as of both December 31, 2006 and December 31, 2005.
Our loan portfolio strategy emphasizes diversification by property type and geographic location.
The following tables set forth the breakdown of the gross carrying values of our commercial loan portfolio by geographic region and property type as of the dates indicated.
## Table 2 ##
December 31, 2006
## Table 3 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td>Power Plant</td><td>Market</td><td>InServiceYear</td><td>Acquired</td><td>Location</td><td>Capacity-Reactor Type</td><td>LicenseExpirationDate</td></tr><tr><td>Pilgrim</td><td>IS0-NE</td><td>1972</td><td>July 1999</td><td>Plymouth, MA</td><td>688 MW - Boiling Water</td><td>2012</td></tr><tr><td>FitzPatrick</td><td>NYISO</td><td>1975</td><td>Nov. 2000</td><td>Oswego, NY</td><td>838 MW - Boiling Water</td><td>2034</td></tr><tr><td>Indian Point 3</td><td>NYISO</td><td>1976</td><td>Nov. 2000</td><td>Buchanan, NY</td><td>1,041 MW - Pressurized Water</td><td>2015</td></tr><tr><td>Indian Point 2</td><td>NYISO</td><td>1974</td><td>Sept. 2001</td><td>Buchanan, NY</td><td>1,028 MW - Pressurized Water</td><td>2013</td></tr><tr><td>Vermont Yankee</td><td>IS0-NE</td><td>1972</td><td>July 2002</td><td>Vernon, VT</td><td>605 MW - Boiling Water</td><td>2032</td></tr><tr><td>Palisades</td><td>MISO</td><td>1971</td><td>Apr. 2007</td><td>South Haven, MI</td><td>811 MW - Pressurized Water</td><td>2031</td></tr></table>
<table><tr><td></td><td colspan="3"> Year ended December 31,</td></tr><tr><td></td><td>2006</td><td> 2005</td><td> 2004</td></tr><tr><td></td><td colspan="3"> (in millions)</td></tr><tr><td> Operating results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$2,050</td><td>$1,696</td><td>$1,464</td></tr><tr><td>Expenses</td><td>1,457</td><td>1,232</td><td>1,198</td></tr><tr><td>Adjusted operating income</td><td>593</td><td>464</td><td>266</td></tr><tr><td>Realized investment gains, net, and related adjustments-1</td><td>-4</td><td>1</td><td>8</td></tr><tr><td>Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change</td><td>$589</td><td>$465</td><td>$274</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2006</td><td colspan="4"> December 31, 2005</td></tr><tr><td></td><td colspan="2">Financial Services Businesses</td><td colspan="2">Closed Block Business</td><td colspan="2">Financial Services Businesses</td><td colspan="2"> Closed Block Business</td></tr><tr><td></td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td> % of Total</td></tr><tr><td></td><td colspan="8"> ($ in millions)</td></tr><tr><td> Commercial loans by region:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Regions:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Pacific</td><td>$4,463</td><td>25.7%</td><td>$2,629</td><td>35.8%</td><td>$4,210</td><td>26.5%</td><td>$2,661</td><td>36.4%</td></tr><tr><td>South Atlantic</td><td>3,423</td><td>19.7</td><td>1,364</td><td>18.6</td><td>2,715</td><td>17.1</td><td>1,401</td><td>19.2</td></tr><tr><td>Middle Atlantic</td><td>2,514</td><td>14.5</td><td>1,527</td><td>20.8</td><td>2,197</td><td>13.9</td><td>1,429</td><td>19.6</td></tr><tr><td>East North Central</td><td>1,464</td><td>8.4</td><td>416</td><td>5.7</td><td>1,360</td><td>8.6</td><td>490</td><td>6.7</td></tr><tr><td>West South Central</td><td>838</td><td>4.8</td><td>401</td><td>5.4</td><td>949</td><td>6.0</td><td>392</td><td>5.4</td></tr><tr><td>Mountain</td><td>868</td><td>5.0</td><td>452</td><td>6.1</td><td>928</td><td>5.8</td><td>429</td><td>5.9</td></tr><tr><td>West North Central</td><td>523</td><td>3.0</td><td>207</td><td>2.8</td><td>529</td><td>3.3</td><td>220</td><td>3.0</td></tr><tr><td>New England</td><td>627</td><td>3.6</td><td>244</td><td>3.3</td><td>451</td><td>2.9</td><td>227</td><td>3.1</td></tr><tr><td>East South Central</td><td>416</td><td>2.4</td><td>113</td><td>1.5</td><td>246</td><td>1.5</td><td>51</td><td>0.7</td></tr><tr><td>Subtotal—U.S.</td><td>15,136</td><td>87.1</td><td>7,353</td><td>100.0</td><td>13,585</td><td>85.6</td><td>7,300</td><td>100.0</td></tr><tr><td>Asia</td><td>1,576</td><td>9.1</td><td>—</td><td>—</td><td>1,726</td><td>10.9</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>657</td><td>3.8</td><td>—</td><td>—</td><td>563</td><td>3.5</td><td>—</td><td>—</td></tr><tr><td>Total Commercial Loans</td><td>$17,369</td><td>100.0%</td><td>$7,353</td><td>100.0%</td><td>$15,874</td><td>100.0%</td><td>$7,300</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2006</td><td colspan="4"> December 31, 2005</td></tr><tr><td></td><td colspan="2">Financial Services Businesses</td><td colspan="2">Closed Block Business</td><td colspan="2">Financial Services Businesses</td><td colspan="2"> Closed Block Business</td></tr><tr><td></td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td>% of Total</td><td> Gross Carrying Value</td><td> % of Total</td></tr><tr><td></td><td colspan="8"> ($ in millions)</td></tr><tr><td> Commercial loans by property type:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Industrial buildings</td><td>$3,558</td><td>20.5%</td><td>$1,826</td><td>24.8%</td><td>$3,229</td><td>20.3%</td><td>$1,928</td><td>26.4%</td></tr><tr><td>Office buildings</td><td>3,151</td><td>18.2</td><td>1,398</td><td>19.0</td><td>3,045</td><td>19.2</td><td>1,320</td><td>18.1</td></tr><tr><td>Apartment complexes</td><td>3,055</td><td>17.6</td><td>1,498</td><td>20.4</td><td>2,958</td><td>18.6</td><td>1,717</td><td>23.5</td></tr><tr><td>Other</td><td>2,143</td><td>12.2</td><td>799</td><td>10.9</td><td>1,898</td><td>12.0</td><td>994</td><td>13.6</td></tr><tr><td>Retail stores</td><td>2,121</td><td>12.3</td><td>1,067</td><td>14.5</td><td>1,381</td><td>8.7</td><td>638</td><td>8.8</td></tr><tr><td>Agricultural properties</td><td>1,190</td><td>6.9</td><td>763</td><td>10.4</td><td>1,037</td><td>6.5</td><td>2</td><td>—</td></tr><tr><td>Residential properties</td><td>997</td><td>5.7</td><td>2</td><td>—</td><td>1,032</td><td>6.5</td><td>701</td><td>9.6</td></tr><tr><td>Subtotal of collateralized loans</td><td>16,215</td><td>93.4</td><td>7,353</td><td>100.0</td><td>14,580</td><td>91.8</td><td>7,300</td><td>100.0</td></tr><tr><td>Uncollateralized loans</td><td>1,154</td><td>6.6</td><td>—</td><td>—</td><td>1,294</td><td>8.2</td><td>—</td><td>—</td></tr><tr><td>Total Commercial Loans</td><td>$17,369</td><td>100.0%</td><td>$7,353</td><td>100.0%</td><td>$15,874</td><td>100.0%</td><td>$7,300</td><td>100.0%</td></tr></table>

Question: In which year is South Atlantic positive for Gross Carrying Value?
Answer: 2006 2005