Entergy Corporation · NYSE:ETR
Entergy — Investor Day (June 2002)
19 slides from Entergy's investor day presentation, Jun 14, 2002
Slide 1: Nuclear: Sustaining Growth
Nuclear: Sustaining Growth Entergy 2002 Analyst Meeting Jerry Yelverton Chairman and CEO, Entergy Nuclear aa June 14, 2002 = En lergy
Slide 2: Discussion Outline
Discussion Outline External Growth Recent Performance Business Model Organic Growth Urn eLy, Page 2 of 19
Slide 3: Southern Fleet Created Platform
Southern Fleet Created Platform ANO 1- 836 MW River Bend - 966 MW Page 3 of 19
Slide 4: Allowing Entergy to Amass Critical Scale in the Northeast at a Reasonable Price
Allowing Entergy to Amass Critical Scale in the Northeast at a Reasonable Price FitzPatrick - 825 MW Acquired Nov. 2000 Average Cost: noni Yarikeo 6 Nl ermont Yankee - $240/kW ‘Acquiring June/July 2002 Indian Point 2 - 970 MW Acquired Sept. 2001 Indian Point 3 - 980 MAW as cquired Nov. 2000 Page 4 o
Slide 5: We've Made Significant Strides in Improving Northeast Capacity Factors
We’ve Made Significant Strides in Improving Northeast Capacity Factors Capacity Factor % 98 98 Before ETR 5 | 2 94 94 90 After ETR 87 86 76 43 Pilgrim IP3 FitzPatrick IP2 VY ETR'01 Industry Regulated Average Note: Before ETR consists of previous 3 years performance Average Source: UDI, Internal Anal
Slide 6: Production Costs of Northeast Fleet Will Trend Toward Southern Levels
Production Costs of Northeast Fleet Will Trend Toward Southern Levels Production Cost 3-year rolling average, $/MWh 42 26 24 19 20 19 7 16 14 ] Pilgrim IP3 FitzPatrick 1P2 VY ANO Grand Gulf River Bend Waterford Industry Average Note: Entergy plants through 2001, Industry is through 2000. Northeast f
Slide 7: Refueling Outage Duration Has Shown Dramatic Improvement in Both Fleets
Refueling Outage Duration Has Shown Dramatic Improvement in Both Fleets Nuclear Refueling Outage Days (Previous Record [Last Outage (“| Entergy Fleet 67 Industry 23 IP3 Pilgrim Grand = ANO1 ~—River_ += ANO2_—- Waterford "77200 '01-'02 Gulf Bend Avg. Avg. Source: NEI, Press Releases Page7 of 19
Slide 8: Entergy Nuclear Is Building the Value of Its Existing Capacity
Entergy Nuclear Is Building the Value of Its Existing Capacity Value-Creating Building Blocks Emission Credits Power Uprates Life Extension Control Costs Maximize Plant Output Personnel Development Safe Operations Page8 of 19
Slide 9: EN Actively Manages Market Risk Through Power Purchase Agreements
EN Actively Manages Market Risk Through Power Purchase Agreements PPA Commitments % of output sold forward 95 Gi current [1 Goal by 1/1/03 50 =| 2002 2003 2004 2005 2006 FitzPatrick 100% 100% 31% 0% 0% Pilgrim 100% 100% 100% 35% 15% Indian Point 2 100% 100% 100% 0% 0% Indian Point 3 100% 100% 100% 0
Slide 10: Entergy's Skill Sets Are Strongly Positioned for Expansion
Entergy’s Skill Sets Are Strongly Positioned for Expansion General Electric, Competitor Matrix Westinghouse, Combustion Engineering, Babcock & Wilcox Operational Technologies FPL Only One Technology Operator Only Services Provided Note: Only operators with more than three plants listed Companies rep
Slide 11: Small-Scale Plants Create Regional Growth Opportunities
Small-Scale Plants Create Regional Growth Opportunities Illustrative Map of Potential Operating Fleets [| small Scale Plants (1 Entergy Plants Note: Map includes only plants whose owners operate three units or fess Page 11 of 19
Slide 12: Building a Large-Scale Fleet Increases Earnings Potential
Building a Large-Scale Fleet Increases Earnings Potential Illustrative Earnings of a 1000 MW Plant $ millions 43.8 SmallScale CapacityFactor Fuel Costs Other O&M Large Scale Note: Large-Scale Operators operate more than 5000 MW of Nuclear Capacity; Small Operators operate less than 2000 MW; Capacity
Slide 13: Innovative Nuclear Transactions Will Create New Growth Opportunities
Innovative Nuclear Transactions Will Create New Growth Opportunities Entergy uses multiple methods of providing value — meeting seller needs and mi izing capital Every deal has been a one-off reallocation of risk based on seller's risk-reward perception We are exploring alternative service offerings
Slide 14: Operating Contracts and Structured Leases Offer Alternative Paths to Growth
Operating Contracts and Structured Leases Offer Alternative Paths to Growth Operating Contracts Characteristics: *Entergy assumes managerial role at plant *Fees are fixed with bonus for achieving operating goals *Customer maintains ownership and employees Benefits for Entergy: *Leverage manager tale
Slide 15: Regulators Are a Key Part of Transaction
Regulators Are a Key Part of Transaction Illustrative Lease of Regulated Plant MOU on Step 1 / Transaction Step 2 + } Rate Base ES y Clarification Lease ~~ (ae) * (Se) = Mareen Page 15 of 19
Slide 16: Power Uprates Add Cheap Capacity with Low Marginal Production Cost
Power Uprates Add Cheap Capacity with Low Marginal Production Cost Entergy Nuclear South Capacity Entergy Nuclear Northeast Capacity Mw Mw 4,159 FitzPatrick Vermont Yankee Grand Gulf Waterford Pilgrim Indian Point 3 ANO 2 Indian Point 2 i 2002 2003 2004 2005 2002 2003 2004 2005 Page 16 of 19
Slide 17: License Renewal Partnership Will Serve Both Entergy and External Plants
License Renewal Partnership Will Serve Both Entergy and External Plants Timeline 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010) ANO 1 ANO 2 D.C. Cook Pintegy Pilgrim ) === Davis Besse FRAMATOME ANP Vermont Yankee FitzPatrick Indian Point 283 Waterford River Bend Grand Gulf Engi
Slide 18: License Renewals Will Add Significantly to Entergy's Long-Term Nuclear Capacity
License Renewals Will Add Significantly to Entergy’s Long-Term Nuclear Capacity Entergy Nuclear Capacity Mw 10,000 Original License License Extension 5,000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Note: Does not include potential power uprates a PE Page
Slide 19: Summary - Nuclear
Summary - Nuclear Entergy Nuclear has the premier skill set in the industry positioning the business for continued improvement and expansion. EN will drive growth by: e Performance improvements at Northeast plants, where Entergy has achieved critical scale at a reasonable cost e Power uprates at bot