Hot Topics

• System Agreement.
• The Promise of New Nuclear.
• Addressing the Needs of Low Income Customers.
• Rising Electricity Costs.
• Entergy's Environmental Policy.
• Entergy's Transmission System.
• Entergy Texas and Deregulation.

• Entergy Arkansas relies primarily on coal and nuclear generation. This has become a relatively inexpensive source of power now that the plants’ construction costs have depreciated. Entergy Louisiana and Entergy Gulf States rely more heavily on oil- and natural gas-fired generation. This has become more expensive as the costs of both commodities have soared in recent years.
• Entergy Arkansas (EAI) has provided notice to terminate its participation in the System Agreement effective 96 months from December 19, 2005 or such earlier date as authorized by the FERC. However, EAI continues to believe that, if properly structured, a replacement agreement could allow Entergy’s operating companies, including EAI, to continue to achieve economies and efficiencies that result from joint operation of an integrated electric system.
• Entergy continues to work to identify alternative arrangements that could continue to facilitate the joint operation of all the Operating Companies.
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• New nuclear energy plants are one of the best ways we know to generate increasing amounts of electric power dependably, safely, at low cost and without emitting air pollutants or greenhouse gases (carbon dioxide) that is believed to be causing global warming.
• The next generation of nuclear energy plants can diversify our energy supply in the U.S., and help to reduce our growing dependence on fossil fuels including imported fuels.
• New nuclear plant designs contain advanced safety features such as relying on passive safety features rather than active components. In an emergency, valves to large overhead reservoirs of cooling water automatically open and gravity lets the water flood the reactor. No off-site power or operator actions are required.
• Next-generation technology has big advantages … 25 percent fewer pumps, valves, motors and cables, fewer operating systems. Simpler designs mean that the plant costs less to construct and operate and can be built in less time -- while improving the plant’s level of safety. Result: Improved safety, low cost, environmentally clean, domestic energy.
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• Low income families spend a disproportionate amount of their income on utility bills compared to other families.
• Entergy supports increased LIHEAP and WAP funding to assist its low-income customers.
• Entergy is actively involved in weatherization projects throughout its system area.
• Weatherization assistance programs reduce the heating and cooling costs particularly for the elderly, persons with disabilities, and children.
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• Since the beginning of 2006, the high cost of natural gas has affected the prices that electric utilities charge their customers. Energy providers do not profit from these higher prices; rather, they are required by law to pass the additional charges, known as fuel adjustments, directly to customers.
• At Entergy, we are working to keep our customers’ prices as low as possible. For example, Entergy uses a diverse fuel mix of nuclear, coal and natural gas to mitigate the volatility of natural gas costs. Entergy also uses hedging practices in purchasing natural gas, which allows the company to lock in low prices when available on natural gas for future use.
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• Entergy recognizes its environmental leadership role and firmly believes that it should be proactive in its efforts to protect, preserve, and enhance the environment. That role is reaffirmed through the company’s investments in gas-fired and nuclear generation, as well as its commitment to purchase combined-cycle gas turbines--with state-of-the-art environmental technology-- for ongoing and future development projects.
• Entergy is the only US utility to be named to the Dow Jones Sustainability Index for 6 consecutive years, and the only US utility to be named to the Dow Jones Sustainability Index - World in 2006 and 2007.
• Entergy is the second cleanest utility generator among the top 10 generators. This is due to our clean generation portfolio with significant nuclear and natural gas generation.
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• Independent power producers or other generators can use Entergy’s transmission system to move power. To make sure this takes place without affecting reliability or compromising the security of Entergy’s system, an Independent Coordinator of Transmission, totally separate from all Entergy business interests, works with these producers and Entergy to provide access as needed.
• In some instances, when an independent power producer or other generator wants access to Entergy’s transmission system to send power to another part of the country, new interconnecting lines and substations must be built. Entergy believes the new transmission system users should pay for those expansions.
• Likewise, increased demand for power by Entergy customers in certain areas requires more transmission facilities. Entergy pays for these projects and asks state public service commissions for approval to charge customers.
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There are two electric markets in Texas – regulated and deregulated – and Entergy Texas is stranded between the two. The Texas Legislature passed landmark legislation in 1999 known as Senate Bill 7 that deregulated much of the Texas electric industry. Electric deregulation became effective for the majority of Texans on January 1, 2002. Deregulation for Entergy customers in Southeast Texas has been delayed.