Entergy 2008 Annual Report Download - page 8

Taking the Long View of Challenging Times
Regardless of all the reasons we might have to feel badly about
the economy or pessimistic about the future, I have great
confidence we will figure it out and get it right. Some would say
the world has changed forever. I don’t know about that. But
I do know in business, ultimately, truth and substance win out
over a good “sales pitch.” For Entergy, flexibility and optionality
are preferable to a strategy locked in place based upon a
“certain future.” We exist to serve our stakeholders – whether
customers, owners or society as a whole. Any strategy or mission
that does not make the world better off is not sustainable. We
cannot claim all of our stakeholders were made better off in
2008. But we do believe we have all that is necessary to change
that including:
n Extraordinary, dedicated employees,
n Extraordinary support from a diverse and talented
Board of Directors,
n Extraordinary opportunities in a time of
extraordinary uncertainty.
In Fast Times at Ridgemont High our slacker friend finds
himself in the right place at the right time and realizes riches
overnight. Unfortunately, his self-indulgence causes him to lose
it almost as quickly.
Some might argue our financial success in nuclear was simply
a matter of being in the right place at the right time. On the
other hand, no one can argue that the value added has not
been beyond anyone’s expectations and a direct result of hard
work and considerable expertise. No one can credibly argue
the value added from the proposed spin-off is not real nor
substantial. The market is not conducive to finalize this effort at
the moment, but it will be. Investors and lenders will ultimately
return to the market; more carefully and smarter. As a result, in
the long term Enexus is well positioned. Enexus represents real
long-term value and substance. It makes something that makes
the world better and it does it with a clean generating fleet
and less expensively than alternatives offered by competitors.
It creates value.
At the same time, this has not been a 10-year journey defined
by one fortunate turn of events (i.e., nuclear acquisitions made
valuable by rising fossil fuel prices). We are a point-of-view-driven
company and we entered into these transactions fully expecting
that outcome (in addition to creating increased reliability
and safety). Over the last 10 years based on a dynamic point
of view, we have completed nearly 40 transactions realizing
substantial value (e.g., sale of Entergy-Koch Trading) or
avoiding potential losses (e.g., canceling/selling turbines on
order when the independent power market was showing early
signs of weakness). Our point of view enabled us to be an early
mover, while others let wishful thinking trump cold eyes analysis.
That same discipline, that same refusal to either follow the
herd or remain in love with our own ideas, despite changing
circumstances, will drive our actions going forward. We have
created substantial value over the last 10 years and unlike our
slacker friend, Spicoli, we will not succumb to self-indulgence
and let it all slip away.
As distressing as 2008 was in many ways, we firmly believe we
are focused, adaptable and ready to meet the challenges that lie
ahead. We have the right checks and balances in place to ensure
we are appropriately balancing risk and reward, stability and
growth. While we may not be able to predict what comes next,
or even be entirely predictable from the outside looking in,
there is one thing you can count on. We will be relentless in
seeking value and managing risk, and we will be well prepared
to seize whatever opportunities may come our way in these
uncertain times.
Entergy received a perfect 10 rating
from GovernanceMetrics International
for its corporate governance practices.
J. Wayne Leonard
Chairman and Chief Executive Officer
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