Entergy Corporation · NYSE:ETR
Entergy — 2006 UBS Natural Gas & Electric Utilities Conference
22 slides from Entergy's conference presentation, Feb 15, 2006
Slide 1: Entergy's 2006 Agenda: Stability, Recovery and Growth
Entergy’s 2006 Agenda: Stability, Recovery and Growth 2006 UBS Natural Gas & Electric Utilities Conference Leo Denault Executive Vice President and Chief Financial Officer = February 15, 2006 pa Entergy,
Slide 2: Safe Harbor and Reg G Compliance
Safe Harbor and Reg G Compliance Inthis presentation and tom tine ta tine, Enteray mekes statements concerring its expectations, beets, plans, akjecives, goals, lrategles, and Mure everts or perfomance. Such datemerts are "forvarc-laoking statements" within the mesrirg ofthe Private Securities Liiga
Slide 3: Substantial Progress Was Realized on 2005 Initiatives Before the Storms
Substantial Progress Was Realized on 2005 Initiatives Before the Storms 2008 Initiative Complete @ Incomplete Objective Achieve greater regulatory certainty at the state and federal levels Louisiana Global Settlement ELI Rate Case Texas Legislation Generation Market Power System Agreement Case Indep
Slide 4: Capital Deployment Was Proceeding as Planned
Capital Deploymen Was Proceeding as Planned ity Supply Plan Acqui 05-Today 60% Payout Ratio Cap 45 2 be valu 30 | a St 15 St oO ao 04 05 Share Repurchase Program 02-05; end of period shares in millions 240 230 20 30 $0.48 Remaining | srirerrervwons gg | Bibi ayer Capen 4Q02 4Q03 4Q04 4Q05
Slide 5: Storms Abruptly Disrupted Plans and Called for Rapid Execution on New Initiatives
Storms Abruptly rupted Plans and Called for Rapid Execution on New Initiatives Post-Stoan Cash Demands Matched With Post-Stonn Liquidity if Unexpected Cash Demands* \ Post-Storm Li ity* 2Q05 vs. 4Q05; $B 4Q05; $B Hurricane 3.6 Restoration Contract Califor \ Fuel Under : Recovery ‘i a call 2005 4Q05
Slide 6: Success in Recovery Initiatives
Success in Recovery Initiatives Calls for Collaboration Potential Timeline of Action on Recovery Initiatives | “recs” Required No Collaboration Required 4q05 1006 2a06 3q06 4q06 Tose valuation payments to Hurcane ale . Line of sight on ‘ederal tex provisions CDBG /Tax ard coe mee telunds state ation
Slide 7: Uncertainties at ENOI Are Being Systematically Managed
Uncertainties at ENO! Are Being Systematically Managed Entergy New Orleans’ Average Load BIS0INS-215106; % of typical Weather-adjusted Ss ——————— ——— @730705 9730105 10730005 41990705 1213005 1130106 Key Events for Entergy New Orleans Restoration Progress Bankruptcy Process Next Steps Average Load,
Slide 8: Moving Beyond Storms, Multiple Texas Options Are Creating Positive Results
Moving Beyond Storms, Multiple Texas Options Are Creating Positive Results Past Actions in Texas Vertically integrated regulated utility TXROA bw - $18M capacity rider implemented 12/05 enacted (99) - $18M interim transition cost rider to be aa -08 implemented 3/06 pending mid 06 decision Pursued re
Slide 9: Further Certainty Is Being Pursued at the Federal Level
Further Certainty Is Being Pursued at the Federal Level Federal Regulatory Agenda Next Steps System Agreement Decision - Make compliance filing 22% h Production - Prepare to implement (41-11%) ost Equalizatic - Develop replacement agreement ICT Proposal Benefits - Receive orders / approval fo implem
Slide 10: Utility Is Seeking New Long-Term Supply Sources to Provide Fuel Stability and Diversity
tility Is Seeking New erm Supply Sources to Provide Fuel Sta and Diversit 2006 RFP for Long-Term Resources Solid Fuel Self-Build Alternative 06-15 planning horizon {including ENO!); MW ‘To be evaluated in 06 RFP Unit Repower Little Gypsy 3 Owner Entergy Louisiana Location Near LaPlace, Louisiana Cap
Slide 11: Measured Market Risks Are Being Taken at Nuclear to Capture Higher Market Prices
Ente Entergy Nuclear Hedged Output As of 12105; % of MWhs 100 80 60 oo 02 04 O6E OBE 10E Measured Market Risks Are Being Taken at Nuclear to Capture Higher Market Prices Entergy Nuclear Energy Prices O6E-10E; Average SIMWh 90 60 70 60 | sold inos 50 Portfolio at 12/05 40 Portfolio at 12/04 30 O6E O7
Slide 12: Nuclear Volumetric Improvements Will Continue to Provide Near-Term Earnings Growth
Nuclear Volumetric Improvements Will Continue to Provide Near-Term Earnings Growth Phase |: 2003-2006 Phase |: Beginning in 2006 Increase Capacity by 245 MW Extend Plant Lives Entergy Nuclear Uprates License Extension Application Process MW 06 Entergy Nuclear Planned Applications 2006 2008 2010 2012
Slide 13: Cost Control Initiatives Are Being Realized for Both Businesses
Cost Control Initiatives Are Being R for Both Businesses Non-Fuel O&M Expense per MWh* Entergy Initiatives 03-06E; $IMWh* es Entergy Utility Continuous As-reported improvement seein N 15.3 14.8 Model 1 14 1 a 03 04 os O6E Entergy Nuclear HealthStrides ‘Moving in a new direction As-reported ae 2 2 a
Slide 14: 2006 Will Be a Year to Rebuild and Establish the Foundation
2006 Will Be a Year to Rebuild and Establish the Foundation As-Reported and Operational EPS O6E Guidance 4.65 Midpoint 033 o42 0.10; ___, 4.50-4.80 Range 440 10) o10 4.40 | (0.10) aay (05) (0.20) (0.11) Utility Nuclear Revenue 0.17 omM (0.05) Interest 0.02 Other (0.04) 05 Weather Storm Adjusted Sale
Slide 15: Cash Available Is $2.3B Over 2006-08, with Recovery Initiatives Targeted for Financing Plan Unwind
Cash Available Is $2.3B Over 2006-08, with Recovery Initiatives Targeted for Financing Plan Unwind Projected Cash Available for Capital Redeployment* 06.08; $B Gash flow from operating activities 13 ° i Free Cash Flew Capital © Common Equity Debt 06.08 Excluding Expenditures Dividends Capacity Cash
Slide 16: 2006 Initiatives Support Achievement of Long-Term Financial Aspirations
2006 Initiatives Support Achievement Long-Term Financial Aspirations Key Initiatives and Aspirations (RAE tA] + Commence recovery of storm costs through a combination of insurance recovery, federal assistance and regulatory rate relief in a manner that supports the removal of utility operating compa
Slide 17: Event-Driven 2005 Actions Will Reverse Course as We Deliver on Our 2006 Agenda
Event-Driven 2005 Actions Will Reverse Course as We Deliver on Our 2006 Agenda Total Shareholder Return Rating Agency Actions Post-Storms 12131104 through 12/30105; % As of October 05 Outlook 24 —_________,—_ ‘SaP ETR | BBB ‘Watch Negative Ea | a- Watch Negative 20 EGs| | BBB+ — | Watch Negative Eu
Slide 18: Entergy's 2006 Agenda: Stability, Recovery and Growth
Entergy’s 2006 Agenda: Stability, Recovery and Growth 2006 UBS Natural Gas & Electric Utilities Conference Leo Denault Executive Vice President and Chief Financial Officer = February 15, 2006 pa Entergy,
Slide 19: Appendix
Appendix = Entergy.
Slide 20: Appendix: Reg G Reconciliations
Appendix: Reg G Reconciliations Table 1: Non-Fuel O&M - Reconcili 2003.2006E (8 per MWh) jion of GAAP to Non-GAAP Measures 2003 2004 2005 2006E ‘As-Reported Non-Fuel O2M Utility oy 3 148 151 155 Entergy Nuclear e) 241 214 202 205 Less Adjustments v Voluntary severance plan Deconsolidation of Entergy
Slide 21: Appendix: Reg G Reconciliations
Appendix: Reg G Reconciliations jon of GAAP to Non-GAAP Measures nce Table2: Earnings - Reconci 2005 Actual and 2006 G: (§ per share} Consolidated As-Reported Earnings 4.19 Less Entergy New Orleans ‘Az Reported excluding Entergy New Orleans ta 4.13 4785.08 Less Speciatitems Competitive Businesses En
Slide 22: Appendix: Reg G Reconciliations
Appendix: Reg G Reconciliations Table 3: Projected Cash Available - Reconi jon of GAAP to Non-GAAP Measures 2006-2008 in billions} 20062008 Net cash flow provided by oper: ta 73 Less: Net nuclear fuel purchases Decommissioning trust contributions Planned capital expenditures Preferred dividends Free
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