Slide 1: The Regulatory and Political Landscape
The Regulatory and Political Landscape Entergy 2002 Analyst Meeting Curt Hébert Executive Vice President External Affairs _ = Entergy June 14, 2002
Slide 2: Discussion Outline
Discussion Outline Federal Regulatory Issues RTO Progress Indian Point Campaign Suninany, Page 2 of 17
Slide 3: FERC: Evolution of Market Design
FERC: Evolution of Market Design Regulation Trilogy 1996 1998 2000 2002 2004 ORDER 888 - Open ; ORDER 2000- RTOs “ Standard Market Design Access + Set forth minimum + Single “Network + Required utilities to characteristics and Access Service” tariff live by same tariff functions for RTOs brings toge
Slide 4: FERC's Standard Market Design Is Developing
FERC’s Standard Market Design Is Developing Consistent with Entergy’s POV Standard Market Design FERC’s Perspective + Single “Network Access Service” tariff that brings together retail and wholesale + New transmission service combines flexibility of network service with reassignment rights of point-
Slide 5: California Crisis: Burning Platform for Policy Change
California Crisis: “Burning Platform” for Policy Change December '00 COB Power Price Spot ences spike to s/MWh $3,000/MWh 1000 5 June ’00 SS April01 900 4 Largest spiel PG&E files May '00 planned Sec. of Energy er 800 4 Supply crisis blackout in CA orders suppliers bankruptcy begins, First since WW
Slide 6: CA Crisis: Possible Actions & Implications
CA Crisis: Possible Actions & Implications Status Quo? + Continuation of existing FERC process to review pricing and market power issues through hearings New FERC Rules? + Additional proactive compliance regulations + Code of conduct rules for affiliates + Reporting requirements for traders + Soft p
Slide 7: The SeTrans RTO Is Well Connected
The SeTrans RTO Is Well Connected SeTrans Territory - 74,500 MW of generation - 54,000 miles of transmission - 309,000 square miles of territory + $9.3 billion investment Page7 of 17
Slide 8: SeTrans Is Moving Toward Operations in 2003
SeTrans Is Moving Toward Operations in 2003 Timeline [| Actual Projected 6/01 12/01 6/02 12/02 6/03 aaa T Entergy joins group to form SeTrans wi Advisory committee formed, preliminary FERC filings completed Entergy ITC/RTO filings with retail HS regulators Entergy/Southern/Cleco filing at FERC t I t
Slide 9: SeTrans: Will It Happen?
SeTrans: Will lt Happen? Entergy’s POV What’s Happened What Must Happen + There must be an adequate showing that the benefits outweigh the costs of a Southeast RTO + Participant funding is emerging as acritical component to obtaining retail regulatory approval > Entergy’s POV + Supreme Court opinion
Slide 10: Indian Point: Players Have Varying Agendas
Indian Point: Players Have Varying Agendas Who evERceeren, What Founded in early 80s as a public advocate to protect Hudson River One of 70 citizens’ advocacy groups focused on U.S. rivers Robert F. Kennedy Jr. is V.P. and chief prosecuting attorney Agenda Using fight against Indian Point as anew fu
Slide 11: Indian Point: Public Support
Indian Point: Public Suppor uclear Reactors as Terrorist Targets In the recent sonsearching over how best to _qucuce and find ways to against further terrorist ultacy —— - ‘cused on the potent{ Square along the Hudson River, A grour on's 203 nuclear Pow mentalists and public officials has petitions
Slide 12: The Facts Support Indian Point as Safe, Secure, and Vital
The Facts Support Indian Point as Safe, Secure, and Vital SF” Bt SECURE eal + Safety-first culture promotes critical self- : assessment, rewards safe practices, encourages openness + No agency responsible for public safety -- federal, state or local -- has suggested + Layered security, controlled ac
Slide 13: Indian Point: Managing the Issues
Indian Point: Managing the Issues Who What Entergy Is Doing + Attending every forum where invited to make certain balanced information is presented + Publishing facts in both written and internet format to dispel misinformation eeeeeenee, + Accommodated more than 150 elected and other government off
Slide 14: Indian Point website: Safe, Secure, Vital
Vital. Indian Point En¢ Welcome to safesecurevital.org A Message from Michael Kansler, Chief Operating Officer, Entergy Nuclear Northeast Entergy Nuclear Northeast has prenared this website to serve as a reliable source of information regarding our Indian Paint Energy Center in Buchanan, N.Y. On thi
Slide 15: Summary - Regulatory and Political Landscape
Summary - Regulatory and Political Landscape Entergy is managing key events in the federal arena: e@ FERC’s standard market design is taking shape consistent with Entergy’s POV e Our exposure to California is minimal, so compliance with any federal mandates poses little risks e SeTrans is well posit
Slide 16: Legislative Update - (Appendix)
Legislative Update - (Appendix) Proposed Legislation Description Entergy’s Position Energy Bill PUHCA Repeal Participant Funding FERC Merger Authority Price-Anderson Renewal Nuclear Decommissioning Trust Repeals 1935 Act and replaces it with provisions granting regulator review of records Requires F
Slide 17: Legislative Update - (Appendix)
Legislative Update - (Appendix) Proposed Description Entergy’s Position Legislation Energy Bill - continued Transmission Tax Relief Other Legislation Nuclear Waste Repository Bonus Depreciation Wind Energy Production Tax Credit Steam Generator Tariff Waiver Mitigates tax consequences of asset divest