Entergy 2004 Annual Report Download - page 5

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-3 -
Entergy Corporation and Subsidiaries 2004
aperformance that ranked sixth out of
the 20-member S&P Electric Utilities
Index. While our one-year performance
is belowour long-term aspiration to
deliver top-quartile shareholder returns,
we areconfident that the actions taken
in 2004 support our continued leadership
in creating value for our shareholders.
2004: Our Points of View
In spite of moreadversities than
expected, 2004 was a year of solid
progress consistent with our point-of-
view driven business model. Based on
market knowledge and sophisticated
analysis, we developed clear points of
view in 2004 and then acted decisively.
Here are a few examples:
•We remain convinced that
performance-based incentives that
allowutilities to earn a higher return
on equity by providing excellent
service to customers while passing
lower-cost generation savings on to
utilitycustomers areefficient
mechanisms to align the economic
interests of public utilities, customers,
and shareholders. We have incentive
rate structures in place at Entergy
Mississippi and Entergy New
Orleans. In a pending rate case for
Entergy Louisiana, we have filed
testimonyproposing a formula rate
plan. And in a pending rate case for
Entergy Gulf States – Louisiana, the
LPSC has advanced a procedural
schedule for a global settlement that
includes such a formula rate plan
and would resolve12 open dockets.
•Our point of view in Texas has
evolved along with changes in the
regulatorydirectionthere. While we
havepursued Retail Open Access
since 1999, we now believe that there
“We were honored for the second consecutive
year to receivethe Edison Electric Institute
award in recognition of the highest total
shareholder return over the last five years.”