Entergy CORPORATION

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We are prepared, with the resources – including our long-term aspirations, point-of-view-driven business model and experienced employees – that we need to meet the challenges that lie ahead.

Entergy Corporation is more than a group of people or a collection of assets. It is an adaptive organization defined by its values and aspirations, and governed by its business model, policies and systems. Entergy strives to create sustainable value for its many stakeholders along financial, societal and environmental dimensions. This approach has proven effective in meeting a variety of challenges over the past decade.

In fact, Entergy has demonstrated consistent industry leadership in multiple areas as evidenced by the following performance and recognition.

  • Over the past 10 years, Entergy has delivered a total shareholder return of 269 percent, compared to 70 percent for the Philadelphia Utility Index and -13 percent for the S&P 500. While we are not satisfied with the total shareholder return we delivered in 2008, our focus has never been on delivering short-term results. Instead, we remain committed to demonstrating leadership over the long term.
  • In 2008, Entergy utility employees executed the fastest and safest storm restoration in the company’s history following two back-to-back, devastating hurricanes. We received both the Edison Electric Institute Emergency Assistance Award and the Emergency Recovery Award for our response to 2008 storms. In fact, we are the only utility to have received either the Assistance and/or Recovery Award every year since 1999, when this recognition was initiated.
  • Entergy is routinely recognized for its excellent corporate governance practices. In 2008, we received a perfect 10 rating from GovernanceMetrics International. Of 4,200 companies reviewed, just 1 percent received a perfect score. Institutional Shareholder Services Corporate Services awarded Entergy a 100 percent rating for corporate governance in its utility ranking. Entergy received a 98.5 percent index rating, placing us among the very top performers in the S&P 500.
  • Entergy has been named to the exclusive Dow Jones Sustainability World Index for seven consecutive years and we have been the only U.S. utility on the World Index for the last three years. Entergy ranked best-in-class for environmental policy and management systems, and for talent attraction and retention. We scored in the top percentile for corporate governance and climate strategy.Continued next page
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  • Entergy was once again named one of the 100 Best Corporate Citizens by Corporate Responsibility Officer magazine in 2009 and was the top utility company for the second time in three years. Entergy ranked 10th out of 100 based on a weighted average of rankings in seven key areas: environment, climate change, human rights, philanthropy, employee relations, financial and governance.
  • In 2008, we received the Edison Electric Institute Advocacy Award for our initiatives to help the 20 to 30 percent of Entergy customers living in poverty in our service territories within Arkansas, Louisiana, Mississippi and Texas. We believe it is our obligation to strengthen the communities we serve. Our low-income initiatives include support for affordable housing, sponsorship of individual development accounts that help low-income workers build financial assets, and advocacy at all levels of government for funding to assist the elderly and the disabled pay for energy costs.
  • In December 2008, Entergy was honored to receive a special Platts Global Energy Award of Excellence in recognition of a track record of standout performance over the past decade. Entergy is one of only four companies worldwide to receive this special award.
Meeting the Challenge: Standing ready with well-informed and dynamic points of view

Our performance is guided by our long-term financial, environmental and societal aspirations. Specifically, we aspire to continually deliver top-quartile total shareholder return, achieve an accident-free work environment, be the cleanest power generator in America, and help break the cycle of poverty and contribute to a society that is healthy, educated and productive. Here is our 2008 progress against each of these challenges.

Meeting the Financial Challenge

We delivered total shareholder return of -28.3 percent in 2008 due largely to last year’s unprecedented stock market declines. We are not satisfied with this performance and we remain committed to our overarching financial aspiration to continually achieve top-quartile total shareholder return. In 2008, we maintained a 48 percent dividend payout ratio and continued to repurchase shares under our approved share repurchase program. In 2008, we returned approximately $1 billion to our shareholders through dividends and share repurchases.

Following the spin of our non-utility nuclear assets, Entergy will be a utility company with unique advantages that include excellent operational capabilities, a clean generation fleet, an exceptional portfolio transformation opportunity and a point-of-view-driven strategy that enables early mover positions in developing opportunities. Continued next page

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With these advantages, we expect the next 10 years will offer as many or more value creation opportunities for Entergy and its shareholders as the past 10 years.

Meeting the Safety Challenge

Entergy employees and contractors turned in an excellent safety performance in 2008. Our hurricane recovery efforts were the safest ever in our company’s history. Compared to the restoration effort in 2005 following hurricanes Katrina and Rita, we improved our safety performance in every measure. Reportable incidents dropped by 56 percent and there were no fatalities even though we worked slightly more man-hours during the recovery efforts following hurricanes Gustav and Ike.

In our ongoing operations, we use the criteria in the Occupational Safety and Health Administration’s Voluntary Protection Program as a guide to improve workplace safety. Sites are encouraged but not required to file for certification under the OSHA VPP. As of year-end 2008, approximately 60 work sites within Entergy had earned OSHA VPP Star status, the highest safety rating for an industrial work site.

The commitment to safety extends throughout our organization from nuclear plant operators to linemen and office workers, and from entry-level employees to the most senior executive. Every day, our employees and contractors are focused on building the behaviors, systems and culture that we need to achieve zero accidents.

Meeting the Environmental Challenge

Entergy is the second-cleanest utility generator among the top 10 U.S. generators, due largely to our portfolio of clean nuclear and natural gas generation resources. We were the first U.S. utility to voluntarily commit to stabilize greenhouse gas emissions. After successfully meeting our first commitment in 2005, we made a second voluntary commitment to stabilize CO2 emissions from 2006 to 2010 at 20 percent below year 2000 levels even as we continue to grow our electric production. Our cumulative CO2 emissions for the years 2006, 2007 and 2008 were 122.9 million tons, 4 percent better than our stabilization goal of 127.7 million tons for the same period.

Beyond stabilizing our own greenhouse gas emissions, we are strong advocates for action on the national level to mitigate the risk of climate change. In last year’s annual report, we presented our guidelines for a smart carbon policy. Throughout 2008, Entergy leaders met with leaders in industry, government and non-governmental organizations to help shape the debate on carbon policy. In particular, we have attempted to highlight the importance of finding a technology fix for conventional coal plants, the single largest source of CO2 emissions worldwide. We believe that finding an affordable post-combustion, carbon-capture solution for conventional coal plants should be a central goal of U.S. policy-making action.

Our environmental strategies and our efforts to address climate change have earned recognition from a number of distinguished Continued next page

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environmental organizations. In addition to being named to the Dow Jones Sustainability World Index, we also were named to the prestigious Climate Disclosure Leadership Index in 2008, the fifth consecutive year we have received this recognition, and the SAM Sustainability Yearbook, which recognizes the top 15 percent of companies in each sector worldwide.

Meeting the Low-Income Challenge

Approximately 25 percent of our 2.7 million utility customers fall below the poverty level. We created our low-income customer assistance initiative in 1999 to address this reality. Today, as a result of the economic crisis, the needs are greater than ever, with a growing number of new at-risk Entergy customers who need assistance. Entergy’s commitment to its low-income customers takes many forms – from improving the flow of funds through bill payment assistance, to helping needy customers better manage energy use, to funding education, job training and programs that help low-income families build assets and move towards self-sufficiency.

In 2008, we continued to advocate for increased funding for the federal Low Income Home Energy Assistance Program and a more equitable distribution of those funds to the states the Entergy utility companies serve. In 2008, LIHEAP funding to Arkansas, Louisiana, Mississippi and Texas increased by $3.1 million, up 3 percent over 2007.

In addition, Entergy along with its employees and customers raised more than $2.3 million in local bill payment assistance funds in 2008. One hundred percent of the funds raised go to customers who need help to pay their utility bills.

Entergy Charitable Foundation supports programs that address the underlying causes of poverty. In 2008, approximately $4.6 million was awarded through grants to nonprofit organizations that serve the communities where we live and work.

Entergy is also there for its customers in the worst of times, reaching out when customers are struggling in the wake of natural disasters. After two devastating storms last fall, one of Entergy’s goals was to work with its community partners to reach out to customers who needed the most help getting back on their feet. In December, the Entergy Hurricane Relief Fund announced $700,000 in grants to 39 Louisiana and Texas nonprofits helping victims of hurricanes Gustav and Ike rebuild their lives and communities.

We are not satisfied with the total shareholder return we delivered in 2008. We remain committed to our aspiration to continually deliver top-quartile, positive shareholder return as we have done over the past 10 years.