Entergy 2011 Annual Report Download - page 21

n Entergy Louisiana completed its purchase of Acadia Energy Center Power Block 2, a 580-megawatt
CCGT located south of Eunice, La., and requested LPSC approval to build a 550-megawatt CCGT
unit at the existing Ninemile Point Plant in Westwego, La. A portion of the Ninemile 6 output will be
sold to Entergy New Orleans and Entergy Gulf States Louisiana on a life-of-unit basis. If approved,
construction would begin in 2012 with commercial operation expected by mid-2015.
n Entergy Mississippi announced its plan to purchase the Hinds Energy Facility, a 450-megawatt
CCGT unit in Jackson, Miss., with a targeted closing date of mid-2012.
n Entergy Texas entered into a power purchase agreement with Calpine Energy Services, L.P.
for 485 megawatts from its Carville Energy Center. If approved by the LPSC, Entergy Texas will sell
50 percent of the output of the resource to Entergy Gulf States Louisiana.
n System Energy Resources, Inc. continued work on the 178-megawatt uprate project at Grand Gulf
Nuclear Station, which is expected to be complete in 2012. Grand Gulf also submitted its application
to the Nuclear Regulatory Commission to extend its existing 40-year operating license, which expires
on Nov. 1, 2024.
At the Waterford 3 Steam Electric Station owned by Entergy Louisiana, delays in the fabrication of the
replacement steam generators pushed installation of the steam generator replacement project into fall
2012. The Entergy Louisiana FRP extension noted above includes regulatory mechanisms allowing
for recovery and reducing regulatory lag on this large-scale investment. Also at Entergy Louisiana in
August, the LPSC approved the securitization of costs related to the cancelled Little Gypsy 3 repowering
project. Entergy Louisiana subsequently issued $207 million in bonds at favorable rates. The Little Gypsy
quarterly monitoring process proved to be a model framework for adaptation and working jointly with
our regulators on long lead-time, large capital projects. It allowed all parties to respond quickly as
market conditions changed. The ability to respond to changing conditions is particularly critical given
the intensive capital investment phase that the utility industry is facing. While large, long-lead projects
such as the Grand Gulf uprate and the Waterford 3 steam generator replacement are substantial
undertakings, we expect these productive investments to provide reliable, affordable generation and
contribute positively to long-term earnings.
Growing the Utility Business
In the utility business, we continue to expect long-term load growth of 1 percent to 1.5 percent per year.
With productive investments and flexible regulatory mechanisms, we expect net income for our utility
business to grow at a 6 percent to 8 percent compound average annual rate in the 2010 to 2014 period
(2009 base year). Details on how our long-term financial outlook will be affected by the proposed
transmission business spin-off and merger will be provided at a future date. As we invest and grow
and continue to adapt to changing market conditions, we never lose sight of our top priority,
which is to safely provide our utility customers with affordable, reliable and clean power.
Providing Affordable,
Clean Power to Our
Utility Customers
Over the past five years, our utility operating
companies have stabilized CO2 emissions
at 20 percent below year 2000 levels while
holding average residential-rate increases
significantly below the U.S. average.
Average Residential Rates
2007 – 2011, cents per kWh
14
12
10
8
6
4
2
0
07 08 09 10 11
U.S.
Entergy
Based on latest available data
Emissions
2007 – 2011, average CO2 lbs per MWh
1400
1200
1000
800
600
400
200
007 08 09 10 11
U.S.
Entergy
Entergy Corporation and Subsidiaries 2011
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