Entergy 2006 Annual Report Download - page 23

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21
15 percent open during the year. At the end of
2006, 95 percent of our planned generation for
2007 was under contract, 85 percent for 2008 and
64 percent for 2009 at average energy prices per
MWh of $49, $53 and $57, respectively.
Opportunities to Drive Growth and Create Value
We continue to seek opportunities to grow and
create value in our nuclear business. We will strive to
close the Palisades acquisition in the second quarter
of 2007 and successfully transition the plant into the
Entergy fleet over the course of 2007.
We also believe opportunity exists to further
expand our fleet. We have grown our fleet from
five nuclear units eight years ago to 11 units with
the pending acquisition of Palisades. In addition,
the service contract under which we operate the
Cooper Nuclear Station has also contributed to
growth in this business. However, while not
currently on the market, we believe a number of
consolidation opportunities remain in the U.S.
market for nuclear generation. Roughly two
dozen small nuclear fleet operators exist across the
United States that have either below industry
average capacity factors, above average costs,
regulatory issues or event risk. We remain open to
expanding our portfolio of nuclear businesses in
the future through acquisitions, management
service agreements or other deal structures.
We are also preserving our option to participate
in the next generation of new nuclear development.
Entergy is on track to receive one of the first early
site permits to be issued by the Nuclear Regulatory
Commission in first quarter 2007, qualifying the
Grand Gulf Nuclear Station near Port Gibson,
Mississippi, as an acceptable site for a new nuclear
reactor. We are also pursuing a combined
construction and operating license for the new unit
at Grand Gulf, as well as our River Bend Station
near St. Francisville, Louisiana. Our decision to
proceed with any new nuclear development is
contingent on achieving the necessary legislative
and regulatory actions to enable efficient financing
and timely cost recovery.
Entergy OSHA VPP Star Sites
We aspire to a work environment that is free of
accidents. We use the OSHA Voluntary Protection
Program as the model for outstanding safety
performance. We have made steady progress under
OSHA VPP. As of year-end 2006,36 sites had earned
Star status – the highest possible safety rating for an
industrial work site.
2003
2004
2005
2006
9
19
28
36
We aspire to operate
safe,secure and vital
resources.We strive to
deliver industry-leading
performance.We have
driven significant
improvement in
production costs in
our Northeast fleet.
Northeast Nuclear
Fleet Production Costs
$ per MWh
29
20
Before ETR
ownership
2006
ENTERGY CORPORATION AND SUBSIDIARIES 2
2000066