Entergy 2002 Annual Report Download - page 8

ENTERGY CORPORATION AND SUBSIDIARIES 2002
6
“After five years of
strong performance
on the basics,
Entergy’s
stakeholders are
coming to take all
that for granted –
and you should,
because we don’t .”
Uprates at nuclear plants create new, clean,
low-cost capacity. We’re in the process of
completing some potential uprates right now
and are finalizing plans at other nuclear plants.
Depending on the price of power, we think
this could be a $25 million to $50 million
opportunity.
In 2003 and beyond, we’ll continue to pursue
opportunities to acquire additional capacity for
Entergy Nuclear, and/or agreements to operate
capacity for other nuclear owners.
Again this year, a key challenge for the
nuclear business will be working with the
various public constituencies to address
concerns about operations at Indian Point.
A report by James Lee Witt Associates, issued
in early March 2003, raised new questions
about whether emergency plans for the facility
adequately address the higher perceived level
of terrorist threat following 9/11.
Our security and emergency plans at Indian
Point were revised in accordance with Nuclear
Regulatory Commission guidelines that were
issued in early 2002 and deal explicitly with
terrorism. A thorough study of terrorist-initiated
events conducted by the Electric Power
Research Institute in 2002 concluded that there
is no unique event that results from a terrorist-
type activity, nor is there one for which we are
not already prepared.
Since acquiring both operating units on the
site, Entergy has consistently improved the level
of operations, as evidenced last September,
when the NRC lifted its "red" finding on Indian
Point 2. Entergy has also responded to concerns
to improve security at the site. And we’ll
continue to place a major emphasis on effective
communications with the community and with
public officials.
Entergy-Koch will continue to improve
operations in its pipeline business, while
completing the new Magnolia Gas Storage
facility. Entergy-Koch will also maintain growth
in the trading business with new customers
and new channels to market its financial and
physical optimization services and its unique
products such as weather derivatives.
A high priority for the coming year will
be to sort through and act upon potential
acquisitions for Entergy-Koch. As we explained
earlier, the right acquisition can add earnings
intrinsic to the asset, while building Entergy-
Koch’s balance sheet to support expanded
product and service offerings.
Where we want to be tomorrow
It has been nearly five years since Entergy
adopted its refocused strategy. In the past five
years, we’ve surpassed the goals we established
in going “back to basics”: improving customer
service, safety, and reliability; repairing the
balance sheet and building strong credit; and
maintaining consistent growth in earnings.
In fact, who would have imagined back in
1998 where the company would be today in
terms of stock price, credit ratings, earnings per
share, and operational performance? Now it’s
time for us to look ahead, to think more
broadly and boldly about Entergy’s aspirations.
Not that the basics aren’t still important –
they are. And not that there isn’t still room for
improvement – there is. But after five years of
strong performance on the basics, Entergy’s
stakeholders are coming to take all that for
granted – and you should, because we don’t.
Entergy remains as focused on the “basics”
today as we were in the beginning.
Looking forward, we have to demonstrate
that Entergy is capable of initiatives that move
to the next level of performance. These are our
aspirations for the company that Entergy can
become in the years ahead:
Entergy will be recognized as an
environmental leader, not only in generation,
but among all U.S. industrial companies, and
will demonstrate the advantage of
environmental excellence in achieving
financial results.