Entergy 2008 Annual Report Download - page 15

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and the only important thing
is that you meet it with
the best you have to give.”
– Eleanor Roosevelt
uring the first half of 2008, Entergy Utilities made solid
progress against a diverse set of initiatives – continuing
to transform the generation portfolio and pursuing
constructive rate discussions with a number of regulators.
The second half of 2008 brought unprecedented disruptions
including two record-setting, back-to-back hurricanes and
extreme turmoil in commodity and financial markets. The events
of last year highlighted the importance of being prepared. Our
utilities proved to be ready for the challenges they faced.
Record-Setting Storm Restoration
Hurricanes Gustav and Ike were among the most destructive
storms we’ve ever experienced and presented unique challenges.
For example, Hurricane Gustav severely damaged the transmission
system, knocking 13 of the 14 transmission lines serving the
New Orleans metropolitan area out of service and creating an
island, with the area no longer electrically interconnected to the
electricity grid. At its peak, 964,000 customers were without power
after Gustav, second only to Hurricane Katrina for this measure.
Hurricane Ike knocked out power to 705,000 customers at its
peak, including 99 percent of Entergy Texas, Inc.’s customers –
the most in its history.
Entergy’s utility employees executed a record-setting
restoration. Most importantly, this was the safest restoration on
record for Entergy. Safety measures improved in every category
from those recorded following hurricanes Katrina and Rita.
It was an outstanding performance by a team of utility
employees with a history of storm restoration leadership.
Entergy has been recognized with the Edison Electric Institute’s
Emergency Assistance Award and/or Emergency Recovery
Award for 11 consecutive years, every year the awards have been
given. This record of performance continued in 2009 with the
restoration effort in northern Arkansas following a severe ice
storm in January, rivaling the twin storms of 2000.
Restoration cost estimates for hurricanes Gustav and Ike
are estimated to range up to $1.4 billion. Following the
hurricane Katrina and Rita experience, precedents were
established for innovative, constructive regulatory storm
recovery. In lieu of requesting interim recovery, last fall
Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana, LLC
and Entergy New Orleans, Inc. collectively accessed $229
million from funded storm reserves.
The Arkansas Public Service Commission also approved a
process for Entergy Arkansas, Inc. to recover $22 million of
the $26 million in extraordinary storm damages incurred for
hurricanes Gustav and Ike and other 2008 storms through
a storm damage rider in 2009. Likewise, the APSC opened
a docket for affected utilities to file storm cost recovery
requests for the January 2009 ice storm. Pursuant to that
docket, the APSC subsequently approved Entergy Arkansas’
request to defer for accounting purposes incremental storm
ENTERGY UTILITIES
ENTERGY CORPORATION AND SUBSIDIARIES 2008
Our team of utility employees has been tested by storm and responded with courage
and determination. Our utilities remain strong, capable and prepared.
D
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