Entergy 2005 Annual Report Download - page 25

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21
After we aggressively pursue these initiatives
throughout 2006, we expect our cost recovery
mechanisms to be in place by the end of the year.
We are confident that the plans we executed and
the actions we took to restore power following
Katrina and Rita were not only prudent, they were
exceptional. Our customers deserve nothing less
and we are confident that federal, state, and local
authorities will agree.
RESTORING OUR FINANCIAL FLEXIBILITY
With $1.5 billion in restoration costs, just over
half of which was paid in 2005, and recovery
initiatives yet to fund, combined with other demands
on our liquidity from rapid, substantial increases
in natural gas prices, our financial and liquidity
position following the storms was strained. While
we have one of the strongest balance sheets in the
industry and a fairly conservative risk philosophy,
we recognized that we needed additional financing
capacity. Hence, we implemented a comprehensive
financing plan to meet current, as well as unexpected
calls on our cash position, to protect and solidify
our credit ratings, and to provide the flexibility to
get back on the path we were on prior to
the storms.
In fourth quarter 2005, we completed a new
$1.5 billion corporate revolver for our parent
company, issued $500 million of operating company
debt, and marketed $500 million of equity units.
In addition, we infused $300 million of equity into
Entergy Gulf States – our subsidiary with the highest
overall restoration costs – enabling it to maintain
its liquidity and investment grade credit rating in
anticipation of obtaining some form of cost recovery.
We will be relentless in our efforts to recover
our storm costs. As we receive funding for those
=
Teamwork
The army of more than 23,000 tool workers that was
mobilized to restore power required food, water, sleeping
accommodations, transportation, restrooms, soap, trash
pickup, laundry, and countless other necessities. A small army
of logistics workers housed crews in school gyms, church
camps, warehouses, and in “Tent Cities” – one that housed
750 workers on the grounds of our Waterford 3 plant. Our
logistics crews also met extraordinary challenges presented
by supply shortages, civil unrest, and environmental hazards.
Heroes could be found at every level of our restoration effort –
from the front lines to the supply lines.
Continued on page 24
under incredible circumstances…”
– Daniel Yergin, Pulitzer Prize-winning energy historian