Entergy 2012 Annual Report Download - page 21

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PRESERVING AND ENHANCING EWC’S PORTFOLIO VALUE
We believe EWC offers significant potential to deliver
stakeholder value given the positive effects of economic growth
on load and power prices and the possibility of new or
expanded environmental regulation. However, at current
price levels, we expect declining EWC adjusted earnings before
interest, taxes, depreciation and amortization through 2014.
While the current price environment creates challenges at
certain plants, we will make any investments required for
the safety, security and reliability of our EWC assets. We are
preserving and enhancing that value potential by pursuing
operational excellence, license renewals and appropriate
hedging strategies. We continue to evaluate opportunities
to enhance the EWC portfolio as we did through the Rhode
Island State Energy Center power plant acquisition in 2011.
In addition, we continue to evaluate ways to make EWC
and the utility business more strategically and financially
independent of each other.
Weathering Sandy
In October, Superstorm Sandy devastated communities in New York, New Jersey and other
states along the Atlantic coast. High winds, heavy rain and massive flooding caused damages
estimated in the billions of dollars. EWC’s Indian Point, FitzPatrick, Pilgrim and Vermont Yankee
plants all safely weathered the storm. Indian Point 2, FitzPatrick and Pilgrim remained at full
power while Vermont Yankee reduced power to 88 percent to help maintain grid stability. Indian
Point 3 shut down automatically due to electrical grid disturbance and was back online four
days later.
The safe, secure and reliable performance of our nuclear plants during a record-breaking
storm reinforces the important role these assets play in the communities they serve. Restoring
power following a widespread outage would take significantly longer without the presence
of a large, reliable generation source such as Indian Point. Numerous independent studies
have verified the positive impact of Indian Point on grid reliability, the regional economy and
environment, and human health. Entergy believes, as do many independent experts, that it
is virtually impossible to replicate the economic, environmental and reliability benefits of
Indian Point, even over the long term. Superstorm Sandy further illustrates the beneficial
role Indian Point serves in its communities.
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