Entergy 2008 Annual Report Download - page 12

environment, climate change, human rights, philanthropy,
employee relations, financial and governance.
n In 2008, we received the Edison Electric Institute Advocacy
Award for our initiatives to help the 20 to 30 percent of
Entergy customers living in poverty in our service territories
within Arkansas, Louisiana, Mississippi and Texas. We believe
it is our obligation to strengthen the communities we serve.
Our low-income initiatives include support for affordable
housing, sponsorship of individual development accounts
that help low-income workers build financial assets, and
advocacy at all levels of government for funding to assist the
elderly and the disabled pay for energy costs.
n In December 2008, Entergy was honored to receive a special
Platts Global Energy Award of Excellence in recognition of a
track record of standout performance over the past decade.
Entergy is one of only four companies worldwide to receive
this special award.
Our performance is guided by our long-term financial,
environmental and societal aspirations. Specifically, we aspire
to continually deliver top-quartile total shareholder return,
achieve an accident-free work environment, be the cleanest
power generator in America, and help break the cycle of
poverty and contribute to a society that is healthy, educated
and productive. Here is our 2008 progress against each of
these challenges.
Meeting the Financial Challenge
We delivered total shareholder return of -28.3 percent in 2008
due largely to last year’s unprecedented stock market declines.
We are not satisfied with this performance and we remain
committed to our overarching financial aspiration to continually
achieve top-quartile total shareholder return. In 2008, we
maintained a 48 percent dividend payout ratio and continued
to repurchase shares under our approved share repurchase
program. In 2008, we returned approximately $1 billion to our
shareholders through dividends and share repurchases.
Following the spin of our non-utility nuclear assets, Entergy
will be a utility company with unique advantages that include
excellent operational capabilities, a clean generation fleet,
an exceptional portfolio transformation opportunity and a
point-of-view-driven strategy that enables early mover positions
in developing opportunities. With these advantages, we expect
the next 10 years will offer as many or more value creation
opportunities for Entergy and its shareholders as the past 10 years.
Meeting the Safety Challenge
Entergy employees and contractors turned in an excellent
safety performance in 2008. Our hurricane recovery efforts
were the safest ever in our company’s history. Compared to
the restoration effort in 2005 following hurricanes Katrina
and Rita, we improved our safety performance in every
measure. Reportable incidents dropped by 56 percent and
there were no fatalities even though we worked slightly more
man-hours during the recovery efforts following hurricanes
Gustav and Ike.
In our ongoing operations, we use the criteria in the
Occupational Safety and Health Administration’s Voluntary
Protection Program as a guide to improve workplace safety.
Sites are encouraged but not required to file for certification
under the OSHA VPP. As of year-end 2008, approximately 60
work sites within Entergy had earned OSHA VPP Star status,
the highest safety rating for an industrial work site.
The commitment to safety extends throughout our
organization from nuclear plant operators to linemen and
office workers, and from entry-level employees to the most
senior executive. Every day, our employees and contractors are
focused on building the behaviors, systems and culture that we
need to achieve zero accidents.
Meeting the Environmental Challenge
Entergy is the second-cleanest utility generator among the
top 10 U.S. generators, due largely to our portfolio of clean
nuclear and natural gas generation resources. We were the
first U.S. utility to voluntarily commit to stabilize greenhouse
gas emissions. After successfully meeting our first commitment
in 2005, we made a second voluntary commitment to stabilize
CO2 emissions from 2006 to 2010 at 20 percent below year 2000
levels even as we continue to grow our electric production. Our
cumulative CO2 emissions for the years 2006, 2007 and 2008
were 122.9 million tons, 4 percent better than our stabilization
goal of 127.7 million tons for the same period.
Beyond stabilizing our own greenhouse gas emissions,
we are strong advocates for action on the national level to
mitigate the risk of climate change. In last year’s annual
report, we presented our guidelines for a smart carbon policy.
Throughout 2008, Entergy leaders met with leaders in industry,
government and non-governmental organizations to help shape
the debate on carbon policy. In particular, we have attempted
to highlight the importance of finding a technology fix for
MEETING THE CHALLENGE:
Standing ready with well-informed and dynamic
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