Entergy 2005 Annual Report Download - page 12

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company will greatly benefit from their expert insights
and knowledge. We would like to thank two departing
Board members – Claiborne P. Deming and Kathleen A.
Murphy – for their exceptional leadership. We appreciate
their many contributions and wish them well in their
future endeavors.
RECLAIMING LOST GROUND
We come out of the tests of 2005 more determined than
ever to be the best-in-class at safely providing clean,
reliable, and affordable power to our customers. Financially,
we realize we lost ground in 2005 and we will take
measured steps to not only make it up, but return to where
we would have been if Katrina and Rita had never hit.
■In our utilities, we expect in 2006 to have hurricane
regulatory recovery mechanisms in place, a decision on
our request for federal relief, and a clear line of sight
on a resolution for Entergy New Orleans. By 2007,
we expect our utility business to be back on track.
■In our nuclear business, we continue to see strong upside
potential for efficient nuclear generators which can
deliver reliable power. Faced with the alternative supplies
from expensive natural gas-fueled plants, our nuclear
business continues to enter into new contracts with
attractive pricing for both new and existing customers
and to generate excellent results. As we did in 2005,
we will adjust our hedging strategy to enable us to take
measured market risks going forward and to conform to
our dynamic point of view on market pricing for natural
gas or other alternative fuels. In addition, we continue
to assess opportunities to broaden our nuclear portfolio.
We will act only when we find opportunities that are
fairly priced and leverage our existing asset base and
operational expertise.
■One strategy that was significantly impacted by the
events of 2005 is our plan to return cash to our
shareholders. With the unexpected drain on our
liquidity, we were forced to halt our share repurchases
and forego any increase in our dividend level. As we
restore our financial flexibility, we will consider making
more aggressive changes – like a step increase in our
dividend or accelerated share repurchases, for example –
to make up the ground we lost in this area.
Even with the massive disruption we experienced last
year, our long-term aspirations remain intact. As we move
to make up lost ground, the choices we make will be guided
by our long-term aspirations. For example, we will continue
to make investments that improve our customer service
and reliability, the safety of our operations, our impact on the
environment, and our cost position.
THE MOST IMPORTANT WORDS OF ALL
All of us who survived the devastation of Hurricanes Katrina
and Rita – whether young or old, rich or poor, strong
or weak – have come to appreciate the significance of two
simple words: “thank you.” You survive an event of this
magnitude only through the help of others. At Entergy, we
have many to thank.
First, always first, we thank our employees for their
courage and dedication under unbelievable hardship. Their
individual stories were often a source of inspiration during
some of the darkest moments. We are proud to serve with
these people – our employees, our heroes.
We thank others in our industry for the massive
assistance provided to restore power following the storms.
We thank our suppliers and business partners for the
support they generously gave.
We thank all of you for the time, goods, and money you
donated following Katrina and Rita. Firefighters from
around the country, volunteers in local shelters, churches
that gathered needed goods, and the millions of Americans
who gave to the relief efforts – your help made a
tremendous difference.
We especially thank those who contributed to the Power
of Hope Fund. With a $1 million contribution from
Entergy Corporation, we established the Power of Hope
Fund in September 2005. Contributions to the Fund –
whose purpose is to help disaster victims rebuild their lives
following the storms – reached nearly $4 million. By the
“Entergy… has been given high
Extensive storm damage and restoration
costs had a negative impact on total
shareholder return in 2005. We are working
hard to quickly regain the ground we lost so
that we are once again a leader in creating
value for our shareholders.
ETR
Total shareholder return
in percent
4.7
ETR
S&P Electric Utilities
One Year
Five Year
32.2
S&P Electric Utilities
90.0
18.2