Entergy and the Environment

The Energy-Efficient Route to Lower CO2 Emissions

Energy efficiency is an effective tool that could play an important role in solving the climate change problem while holding customer and utility costs down in a CO2 constrained world. Cost-effective energy efficiency can and should be a valuable resource for meeting the greenhouse gas reduction goals outlined in the American Clean Energy and Security Act of 2009, also known as the Waxman-Markey bill.

Energy efficiency is the use of a particular technology that requires less energy to perform the same function. For example, a compact fluorescent light bulb uses less energy compared to a traditional incandescent light bulb. Replacing one 75-watt incandescent light bulb with a 20-watt compact fluorescent light bulb, which produces the same amount of light, will save a consumer more than $30 in energy costs (using average U.S. residential electric rates). It could also prevent more than 300 pounds of CO2 from entering the atmosphere.

A number of scientists and organizations, including the Electric Power Research Institute, have identified energy efficiency as one important way to achieve meaningful greenhouse gas reductions.

Individual consumer awareness of everyday decisions is equally important not only because it significantly contributes to fighting climate change, but because it also results in saving the consumer money.

The Waxman-Markey bill sets forth a series of energy efficiency programs that target energy reductions and efficiency standards in buildings, lighting and appliances, industrial facilities and public institutions.

Entergy's most recent Strategic Resource Plan, which is the company's long-term plan for meeting customer electricity needs, incorporates approximately 650 megawatts of cost-effective energy efficiency potential over the next 10 years. In addition, the plan identifies 1,050 MW of energy efficiency potential over a 20 year horizon, which is equivalent to two large gas or solid fuel generation units.

The plan calls for more than 2.2 million megawatt-hours of cumulative energy efficiency in 10 years and over 2.8 million MWHs of cumulative energy efficiency in 15 years. This amounts to nearly 1 million metric tons of CO2 reductions over 15 years and is one tool that will help Entergy cost-effectively meet future greenhouse gas emission caps.

However, aggressive policy initiatives from state and federal government are required to tap the full potential of energy efficiency. Such actions must include better building codes, better appliance standards and, most important, the ability for utilities to earn a reasonable return on energy efficiency investments that are made to specifically assist customers with lowering their energy costs.

Energy efficiency presents a win-win scenario where consumers enjoy lower energy bills and the world enjoys reductions in greenhouse gas emissions associated with the reduced generation of electric power. For utility companies and other industries, increased energy efficiency also results in lowering compliance costs associated with the Waxman-Markey bill.

Entergy’s energy efficiency efforts

To date, 26 energy efficiency and demand side management programs or pilots are under way across the Entergy system. These efforts include:

• Entergy Arkansas offers 10 energy efficiency programs to residential, commercial and industrial customers.

• Entergy Texas’ energy efficiency programs have been in place since 2002. Today there are nine programs for residential and commercial customers.

• Entergy New Orleans launched five energy efficiency pilot programs for residential, commercial and industrial customers in 2009. These “Quick Start” programs are intended to begin to transform the energy market and build a workforce in New Orleans. Entergy New Orleans will also develop energy efficiency programs for the city’s Energy Smart Plan that is scheduled to launch in 2010.

• Entergy Gulf States Louisiana is piloting advanced metering programs as well as a new Web portal that allows customers to monitor their energy use over the Internet on a near real- time basis.

• Entergy Louisiana’s Web site includes a series of energy efficiency tips and a home energy calculator that offers an online energy audit.

• Through Entergy’s ENsight Web page, customers can estimate their electricity usage, learn how much energy certain appliances use and explore ways to better manage their electricity costs.

• The Make an Impact Web site, in partnership with the Pew Center for Climate Change, offers users a personalized CO2 footprint analysis and action plan for a more energy efficient lifestyle.

• Through the "Change A Light, Change The World" campaign, Entergy helped purchase 10,000 compact fluorescent bulbs, which are expected to reduce more than 1,000 tons of greenhouse gas emissions.

Energy Efficiency Quick Facts

• The U.S. uses nearly $1 million worth of energy each minute, 24 hours a day and every day of the year.

• Even with less than 5 percent of the world’s population, Americans consume slightly fewer than 25 percent of the world’s energy resources.

• The average American consumes six times more energy annually than the world average.