Entergy 2006 Annual Report Download - page 6

■We made our second five-year
commitment to voluntarily stabilize
our CO2emissions at 20 percent below
year 2000 levels from 2006 to 2010
after successfully completing our first
commitment with emission levels that
were 23 percent lower than our target.
■In 2006, we delivered total shareholder
return of 38 percent relative to the 20
percent returned by the Philadelphia
Utility Index – reinforcing our belief
that the real market is not just day
traders looking at a screen for a quick
buck, but sophisticated investors who
understand long-term value. We
restored market confidence by
demonstrating that Entergy’s long-term
value proposition remains intact. For
the year 2006, Entergy’s as-reported
earnings were $5.36 per share, up 28
percent from $4.19 per share in 2005.
Operational earnings were $4.72 per
share, up seven percent from $4.40 per
share in 2005.
■Most importantly, in 2006, our
employees achieved the safest year in
the history of the company.
In 2006, for the fifth consecutive year,
Entergy was named to the Dow Jones
Sustainability Index – World, an index
that tracks the performance of companies
that lead their field in terms of corporate
sustainability on a global basis. This year
we were the only company in the U.S.
electricity sector to be so honored. In the
electricity sector, Entergy ranked best in
class for social responsibility, corporate
governance, climate strategy, corporate
citizenship/philanthropy, stakeholder
engagement and occupational health
and safety. All of which is evidence that
the principles of sustainable growth work
– in good times and bad.
Entergy is a stronger company today
than it was before the hurricanes hit in
2005. That does not happen when you
build on sand, only when you have a solid
foundation of support from employees
and the communities you serve. One that
is built on trust and mutual respect.
Recovering Storm Costs, Managing Risks
We began 2006 with a comprehensive
total storm cost recovery plan that sought
to minimize the impact on our customers.
We successfully pursued recovery from
insurance carriers, federal funds allocated
for community development and state
securitization of remaining costs. All of
which substantially lowered the remaining
costs to customers.
Here are the basic elements of our storm
recovery results in each jurisdiction.
Mississippi
Last June, the Mississippi Public Service
Commission approved recovery of $89
million in storm restoration costs for
Hurricane Katrina with no finding of
imprudence. Ninety cents on the dollar
was funded by the $81 million
Community Development Block Grant
funding received in October. The balance,
plus $40 million to increase the storm
reserve and lower future risks for Entergy
Mississippi and its customers, is being
funded by securitized bonds to be issued
by the state of Mississippi.
New Orleans
In October, the City Council of New
Orleans unanimously approved a
settlement agreement that calls for a
phased-in rate increase, and the creation
of a $75 million storm reserve and an
emergency rate relief provision in the
event of another Katrina-type disaster.
The settlement also called for an
independent process for certification of
storm costs. In early 2007, the City
Council advisors issued their reports on
storm costs incurred through December
2006 with no finding of imprudence.
This rate relief outcome, combined with
the award by the Louisiana Recovery
Authority of a $200 million Community
Development Block Grant, will assist
Entergy New Orleans with its efforts to
emerge from bankruptcy.
Texas
In December, the Public Utility
Commission of Texas unanimously
approved a constructive settlement that
included $353 million of hurricane
recovery costs, an amount net of
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“We made our second five-year commitment to
voluntarily stabilize our CO2emissions at 20 percent below
year 2000 levels from 2006 to 2010 after successfully
completing our first commitment with emission levels that
were 23 percent lower than our target.”