Entergy 2011 Annual Report Download - page 19

In 2011, customer satisfaction ratings as measured in a J.D. Power residential customer survey
improved. Two of our utility operating companies were noted among the most improved utilities. In
addition, residential customers surveyed in the “E Source Review of 100 North American Electric and
Gas Company Websites: 2011” ranked Entergy’s website number one in the South and number three
in the U.S. for offering a positive online experience. Site Selection magazine recognized Entergy for the
fourth consecutive year as one of the Top 10 utilities in North America for its support of economic
development in Arkansas, Louisiana, Mississippi and Texas.
Employees throughout our utility operating companies strive to set industry standards for safety
and operational excellence. For the 14th consecutive year, our industry-leading storm restoration
efforts were recognized by the Edison Electric Institute. We received EEI’s Emergency Recovery and
Emergency Assistance awards. In 2011, Arkansas Nuclear One Unit One achieved a new record for
continuous days online, reaching 538 days in October before beginning a refueling outage. ANO also
won a Top Industry Practice award in 2011 from the Nuclear Energy Institute in materials and service
excellence for the creation of tungsten shielding and vests. These vests were sent to Japan for use at the
Fukushima site in response to the nuclear events following the March 2011 earthquake and tsunami.
Taking Advantage of Opportunities
We have worked closely with our retail regulators to secure mechanisms that allow the opportunity to
earn returns commensurate with investment alternatives of comparable risk. To that end, alternative rate
recovery mechanisms, such as Formula Rate Plans and specific recovery riders, provide more timely
and efficient means for cost recovery. All our utility operating companies have access to one or more of these
regulatory mechanisms. FRPs, which significantly reduce regulatory lag, were first implemented in the
mid-1990s. In addition, we file periodic rate cases in all jurisdictions as needed. As a result of our efforts,
we have realized significant improvement in recent years in earning our authorized returns on equity.
Significant developments in 2011 include:
n The Louisiana Public Service Commission approved a one-year extension of the FRPs for Entergy
Gulf States Louisiana and Entergy Louisiana. As part of the extension, both companies will be
required to file full rate cases no later than January 2013.
n All four utility operating companies with FRPs received orders resolving their 2010 test year FRP filings.
n In November, Entergy Texas filed for an annual base rate increase of $112 million and a 10.6 percent
return on equity. In addition, in March 2011 the Public Utility Commission of Texas opened a
rulemaking to consider authorizing a purchased power capacity rider mechanism. Previous state
legislative acts have authorized distribution and transmission riders.
In other jurisdictions, including Arkansas, the next base rate case is likely to align with the timing related
to the System Agreement exits and the proposed move to the Midwest Independent Transmission
System Operator. Entergy Arkansas will exit the System Agreement before year-end 2013, followed
by Entergy Mississippi in 2015. In addition, the current Independent Coordinator of Transmission
arrangement has approval to continue on an interim basis through November 2012, as
longer-term structures are evaluated.
Finding Shelter Strategically
Whether they take over a crawfish burrow, dig their own or hide in
a crevice or on a tree, frogs take shelter opportunistically. A location
near water is essential for some. A burrow in moist soil may do for
others. Frogs have demonstrated a remarkable ability to adapt to
changes in temperature, moisture and other conditions regulating
their habitat.
Entergy Corporation and Subsidiaries 2011
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