Entergy Corporation · NYSE:ETR
Entergy — Investor Day (June 2002)
20 slides from Entergy's investor day presentation, Jun 14, 2002
Slide 1: Utility: Beyond the Basics
Utility: Beyond the Basics Entergy 2002 Analyst Meeting Jerry Jackson Executive Vice President _ = Entergy June 14, 2002
Slide 2: Discussion Outline
Discussion Outline Past Strategy Execution Future Strategy Business Model Summary Page 2 of 18
Slide 3: Utility Business Model
Utility Business Model 2.6 Million Utility Asset Ownership Product Delivery Asset Operation Customers 109 Million MWh Gov't Customer i Residential Service $7.2 Billion Revenue Page 3 of 180s
Slide 4: Strong Core Competencies Support the Business Model
Strong Core Competencies Support the Business Model Utility Provide excellence through safety, service & reliability —oee ~~ Excellence in safe work practices * Corporate safety council established * Accidents have been cut by 64% since 1998 * Ranked 1st in prevention of lost-time accidents Construc
Slide 5: Back to Basics Strategy Was Successful
Back to Basics Strategy Was Successful Service Improved Significantly Capital Investment and Depreciation Customer Service $ Millions 1998 vs. 2001 Capex Outage Outage Frequency Duration —=Depreciation Down Down 1,057 1,063 40% 42% Call Center Regulatory Outage Answer Time Complaints Down Down 75% 7
Slide 6: Entergy Has Grown Utility Investment
Entergy Has Grow ility Investme Utility Investment* $ Billions 298-01 2% CAGR =98 44 a 10.7 10.6 | | 98 99 00 01 * Based on available estimates at May 31, 2002 Page6 of 18
Slide 7: ...While Maintaining Competitive Customer Rates
...While Maintaining Competitive Customer Rates Average Electricity Rates - SPELEC Companies Cents/kWh 1st Quartile 2nd Quartile Source: RDI Powerdat; 12 Months ending 10/01; includes fuel Page7 of 18
Slide 8: Resolution of Regulatory Issues Reflects Improved Relationships
Resolution of Regulatory Issues Reflects Improved Relationships Regulatory Timeline MPSC EGSITX settles ELI settles ELI settles ELI settles EAI settles rate review 4th rate approves $137 || with PUCT on cost || refund Louisiana ice storm with no rate review gillian ‘fi cael eli Hevesi delays case &
Slide 9: Service + Cost + Community Involvement = Strong Regulatory Relations
Service + Cost + Community Involvement = Strong Regulatory Relations Overall Financial Metric Improvement 7.0% 6.9% 6.2% 98 99 00 * Weather adjusted as reported per books Page9 of 18
Slide 10: The Next Steps in Utility Strategy
The Next Steps in Utility Strategy Will Deliver Continued Growth Improve Customer Service Pursue Regulatory Initiatives Improve Reliability Pursue Generation Investment Improve Regulatory Relationships Pursue Economic Development Average Annual Growth 98 - 01* Initiatives T% 5% Targeted Long Term Av
Slide 11: Regulatory Initiatives Are Aggressive But Achievable
Regulatory Initiatives Are Aggressive But Achievable jana lew Orleans Page 11 of 18
Slide 12: New Generation Plan Required to Address Entergy's 3GW Shortage
New Generation Plan Required to Address Entergy’s 3GW Shortage Capacity and Demand Generation Market cw Grose onan Quectet ae @ aneccup “grserinns ane erate sale Reet et Spring Cosany Pr St @ Homeszoad Courty BE tices Transérea Panda Union (C1 Dora) eae gece par BEWWO-S Evangelre Pojct Ccatervved “c
Slide 13: High-Heat-Rate Generation is Still Viable
High-Heat-Rate Generation is Still Viable and Creates Optionality for Plan Economic Cost vs. Capacity Factor S/MWh 140 —cceT 120 —* 100 18% —ETR Intermediate Gas Pe —ETR Peaking Gas 60 40 20 Nu 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Supply Options Page 13 of 18
Slide 14: Plan Will Benefit Customers and Shareholders
Plan Will Benefit Customers and Shareholders Illustrative Non-Fuel Customer Cost Potential Earnings Impact S/MWh $/share 5 yr time period | 1 Long Run Marginal Cost + * fe Revenue Requirements ac 80001 $/KW-Yr 1 1 4 2 3+ kety purchase + 4—s4001KW 1 5} 9 13 7 I Years 1 Purchase aoe noe Supply strateg
Slide 15: Moving Traditional Base Rate Plan to Comprehensive Plan
Moving Traditional Base Rate Plan to Comprehensive Plan Benefits All Stakeholders | Base Rate Increases | (1 0&MReduction oO Capital Savings = " C1 sates Growth EN an Page 15 of 18
Slide 16: Moving Traditional Base Rate Plan to Comprehensive Plan
Moving Traditional Base Rate Plan to Comprehensive Plan Benefits All Stakeholders | Base Rate Increases 1 0o&mReduction Ri x oO Capital Savings In = C1 sates Growth EN an Fuel Savings Purchased Power Savings Fuel / Purchase Power Efficiencies O&M & Capital / Fuel Efficiencies Be ea Page 15 of 18
Slide 17: Moving Traditional Base Rate Plan to Comprehensive Plan
Moving Traditional Base Rate Plan to Comprehensive Plan Benefits All Stakeholders | Base Rate Increases Traditional Incentive Traditional Potential 0% - 2% ROE Levers Base Rate FRP Enhancement 1 0o&mReduction yaa x C1 capital savings Incentive Levers = 0% - 1% ROE Enhancement New Incentive Levers Fu
Slide 18: Economic Development Efforts Target Commercial, Industrial Customer Needs
Economic Development Efforts Target Commercial, Industrial Customer Needs Projected Cumulative Cogeneration Loss Proactive Customer & Declining Regulatory Initiatives $ Millions 2002 & 2003 73.3 Marketing / Economic 65.7 1998 Plan Development Co-gen “Win Back” se Program 31.3 Protect an profitabilit
Slide 19: Beyond the Basics Initiatives Focus on ROE Improvement and Capital Recovery
Beyond the Basics Initiatives Focus on ROE Improvement and Capital Recovery Financial Metrics (| ROE [=] role 72% 73% 01 02 03 Projected *2001 data is weather adjusted as reported per books; 2002 & 2003 are based on midpoint of operational utiity guidance Page 17 of 18
Slide 20: Summary - Utility
Summary - Utility Deliver 5% average annual growth from the utility by pursuing the following initiatives: e Obtain full recovery of incremental capital investment and improve allowed ROEs e Execute regulatory initiatives in 2002 and 2003 e File generation incentive plans with regulators in 2002 e I