Entergy 2007 Annual Report Download - page 20

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Entergy Corporation and Subsidiaries 2007
Operating highlights for 2007 include a 548-day breaker-to-breaker run
at Vermont Yankee, which followed an uninterrupted breaker-to-breaker
run at our Arkansas Nuclear One Unit 2 in 2006. We also completed the
rollout of our eet alignment initiative for our utility and non-utility nuclear
teams – with goals to eliminate redundancies, capture economies of scale
and clearly establish organizational governance.
While our 2007 operational results were solid, there are opportunities for
improvement. e forced outages that we experienced in our non-utility
nuclear operations in 2007 are not the performance we expect from our
eet. Capacity factors and production costs were both negatively impacted.
Because safety and security come rst in our operations, whenever we
experience an issue, we focus on resolving the issue in the most appropriate
manner, which may include temporarily suspending operations at a plant.
As good nuclear operators, we review our preventive maintenance
programs, our refueling outage scope control, our refueling outage maintenance
work performance, industry operating experience related to the equipment
issues we experience, and our training programs as they relate to equipment
issues. We also seek input from industry organizations such as the Institute
of Nuclear Power Operations, Nuclear Energy Institute and Electric Power
Research Institute so that we can make any necessary adjustments to enable
performance consistent with our high standards going forward.
roughout 2007, we also made progress in the implementation of a new
siren system at Indian Point Energy Center. Indian Point is the rst nuclear
facility to implement a siren system under new, more
stringent standards, which continued to change during
the implementation process. We are taking very seriously
the NRC deadlines to have the new, state-of-the-art
siren system ocially declared operational. We
continue to work with FEMA and other stakeholders
to ensure that the remaining issues will be resolved
and the system approved by FEMA as quickly as
possible, with an August in-service date target.
In the interim, the original siren system also
remains in place and continues to be fully
operable and capable of providing the
necessary public warning should any
emergency occur.
“Our nuclear business offers a significant opportunity for value realization
Block 1: Flashback: ENTERGY acquires nuclear assets
over nine-year period.
Block 2: Safe and secure operations. Establish value
and trust.
Block 3: Power market conditions improve. Financial
markets understand value in nuclear assets.
Block 4: Growing concern over carbon emissions.
Nuclear is emission free!
Block 5: ENTERGY sees value increasing but not
released to shareholders.
Block 6: ENTERGY considers financial structures to
release value.
Block 7: ENTERGY estimates tax consequences and
rejects outright sale.
Block 8: ENTERGY considers spin-off.
Block 9: Plans to pursue SPINCO and JV introduced.
Block 10: Filings made with NRC, SEC, etc.
Block 11: Approvals granted.
Block 12: Spin-off transaction executed.
Value unlocked!
PRODUCTION
Scenes were evaluated. Actions outlined. Plans to pursue a
spin-off of our non-utility nuclear assets were fully formed and
ready for a close-up final review.
The Making of The Value Trilogy