Entergy 2006 Annual Report Download - page 19

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The number of
regulatory outage
complaints dropped
from 535 in 1998 to
81 in 2006.
Regulatory Outage
Complaints
535
81
1998 2006
worked to establish storm reserves to lower future
risks for both our customers and our owners from
the effects of future storms.
Local regulators in New Orleans have been
supportive of our efforts as Entergy New Orleans
continues to make progress in its reorganization plan.
We are planning to have Entergy New Orleans
emerge from Chapter 11 in mid-2007 as a financially
stable utility. Going forward, we will continue to
work with the New Orleans City Council to ensure
that the company remains on solid ground financially
and to minimize its exposure to future storm risk.
In early 2007, we received approval from the
Louisiana Public Service Commission to divide
Entergy Gulf States into two separate operating
companies – one in Louisiana and one in Texas.
We expect to complete the separation by the end
of 2007 – allowing each company to develop
operating strategies that are consistent with the
public policy direction in its jurisdiction.
Pursuant to the legislation passed in 2005, Entergy
Gulf States-Texas made its required Transition to
Competition filing at the end of 2006. In its plan,
Entergy Gulf States -Texas proposed to join the
Electric Reliability Council of Texas. We expect that
the billion dollar investment to electrically connect
our Texas business with ERCOT will provide
customer benefits exceeding this investment.
However, there are important conditions that must
be met in order to proceed. The Texas PUCT will be
deciding these issues in the coming years.
Looking ahead to 2007, we expect closure for all
remaining storm-related matters. We will continue
to implement the Federal Energy Regulatory
Commission’s rough production cost equalization
remedy for the System Agreement, and at the same
time, we will pursue a replacement agreement that
meets the needs of our utility customers without
provoking undue disputes and litigation. In
Arkansas, we will pursue constructive resolution of
the rate case we filed in August 2006 as well as the
outstanding fuel recovery proceeding. In Texas, we
will file our first base rate increase case in 16 years
to be effective when the legislative-imposed rate
freeze ends on June 30, 2008.
ENTERGY CORPORATION AND SUBSIDIARIES 2
2000066