Entergy New Orleans LLC · NYSE:ENJ
Entergy New Orleans — Investor Presentation (November 2008)
15 slides from Entergy New Orleans's investor presentation, November 2008
Slide 1: Overview of IRP Planning Process
Overview of IRP Planning Process New Orleans IRP Public Meeting November 2008
Slide 2: Entergy System
Entergy System The Entergy Operating Companies are planned and operated as a single, EAI integrated electric system, pursuant to ELL the Entergy System Agreement. The six EMI Entergy Operating Companies are EGSI-LA Entergy Arkansas, Inc. (“EAI”), Entergy EGSI-TX Gulf States Louisiana, L.L.C. (“EGSL”
Slide 3: Changing Landscape for Integrated Resource Planning
Changing Landscape for Integrated Resource Planning Technological Technological Landscape Landscape/ / Alternatives Alternatives Environmental Environmental IncreasingGeneration Increasing Generation Concerns Concerns SupplyCost Supply Cost IRP IRP Fuel FuelSupply Supplyand and Uncertainty Uncertain
Slide 4: Overview of Planning Process
Overview of Planning Process Develop Develop Portfolio Define Define Identify Identify Identify Identify Target Target Design Objectives Objectives Drivers Drivers Alternatives Alternatives Portfolio Portfolio Plan Plan Initial Initial Market Project Market Construct Execution Project Test Construct
Slide 5: Entergy System Planning Objectives
Entergy System Planning Objectives In designing a portfolio of resources to meet customer needs, the Entergy System seeks to balance a set of supply objectives including reliability, cost, and risk mitigation. The overall objective is to meet customer needs reliably at the lowest reasonable cost. Ho
Slide 6: Supply Issues
Supply Issues The Entergy System faces a number of issues with respect to generation supply. CAPACITY CAPACITY Long-term resource portfolio is short of reliability requirement and SHORTAGE SHORTAGE load is growing. AGING AGINGFLEET FLEET More than 85% of the existing oil and gas-fired MW are greater
Slide 7: Flexible Capability Requirement
Flexible Capability Requirement Key Drivers of Flexible Capacity Need Flexible Capacity Requirement ETR's Adjusted Flexibility Capability Requirement 1. Load Swing 12,000 2. QF Put 10,000 3. Generator Imbalances 8,000 4. Operating Reserves MW 6,000 Note 4,000 •Remaining Load Swing 2,000 represents l
Slide 8: Long-Term Resource Additions
Long-Term Resource Additions 2003 2004 2005 2006 2007 2008 −EAI WBL −Perryville −Attala (455 −EAI WBL −Approval to −Calcasieu (220 MW (691 MW MW Gas- (156 MW proceed (322 MW Coal & Gas-fired fired CCGT) Coal & with Little Gas-fired Nuclear) CCGT and Nuclear) Gypsy CT) CT) Repower −River Bend −Ouachi
Slide 9: Use Of Purchased Power
Use Of Purchased Power Percent of Total Energy 40% 35% 30% 25% 20% 15% 10% 5% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 Purchases Gas & Oil Generation Less New Gas 9
Slide 10: Reduced Reliance on Existing Gas Units
Reduced Reliance on Existing Gas Units The older gas-fired plants owned and operated by the System operating companies are producing significantly less energy than they did in 1999. EAI Gas & Oil 1999 MWh 2007 MWh % Change EMI Gas & Oil 1999 MWh 2007 MWh % Change Blytheville 22,222 0 -100% Baxter Wi
Slide 11: Changing Wholesale Market Conditions
Changing Wholesale Market Conditions Regional Implied Heat Rate (7X24) Available Wholesale Capacity Btu/kWh 1997 2002 2007 2012 2017 2000 2004 2008 2012 2016 11
Slide 12: Planning Process Considers Range of Alternatives
Planning Process Considers Range of Alternatives Alternatives Portfolio Design Conventional Conventional Generation Generation Alternatives Alternatives Reliability Reliability Demand-Side Demand-Side Risk Cost Risk Management Management Cost Mitigation Mitigation Renewable Renewable Generation Gene
Slide 13: Resource Alternatives
Resource Alternatives ILLUSTRATIVE Conventional Conventional Renewable Demand-Side Demand-Side Renewable Generation Generation Generation Management Management Generation Alternatives Alternatives • Gas-fired CCGT and • Energy efficiency • Wind CT measures • Solar PV • New nuclear • Demand response
Slide 14: Renewable Generation Alternatives
Renewable Generation Alternatives Reference Planning Assumptions (October 2008) Biomass In-stream (Agri) Hydro Solar (PV) Wind Typical Unit MW 50 25 – 50 50 100 Size Operating Intermittent Intermittent Base Load Base Load (Non- (Non- Role Dispatchable) Dispatchable) Typical %/ Max Capacity Annual 75
Slide 15: Renewable Generation Planning Approach
Renewable Generation Planning Approach • Renewable generation is considered along with and on the same basis as conventional generation alternatives. • Renewable generation alternatives are assessed as a component of the supply portfolio. • In designing a portfolio of resources to meet customer need
Entergy New Orleans — Investor Presentation (November 2008) on 6ix