Entergy 2013 Annual Report Download - page 41

Entergy Corporation 2013 INTEGRATED REPORT 40
ECONOMIC
Providing Service to Our Customers
EWC: Operational Performance Management
In 2013, facing sustained pressure from low wholesale power prices, EWC accelerated its efforts to lower costs. Through our human capital
management initiative, we redesigned and restaffed the company to improve efficiency and effectiveness, and lower costs. EWC completed its
organization redesign in July 2013, six months ahead of most company divisions, and implemented staffing changes expected to reduce its annual
operating and maintenance expenditures by approximately 10 percent without impacting security or safety.
2013 HIGHLIGHTS: EWC BUSINESS ACTIVITIES
Non-Nuclear
A decision was made to retire and
dismantle the Robert Ritchie Unit 2
fossil plant which has not operated
for a number of years. An older unit
located in Helena, Ark., Ritchie 2
served its operating role well in
its time.
In 2013, our EWC non-nuclear
fleet achieved a capacity factor
of 54 percent.
License Renewal
Indian Point Energy Center is a
safe, secure, reliable and vital
source of power, supplying a
large portion of the electricity
provided to New York City and
Westchester County.
We are working with federal
regulators and New York state
leaders and regulators to advance
license renewal at Indian Point.
We currently expect the various
license renewal processes to
extend through at least 2018.
Indian Point Unit 2 entered a
period of extended operations
in September 2013, and Indian
Point Unit 3 is expected to do
so at the end of 2015.
Nuclear
Our Entergy Nuclear team received
the Materials and Services – Top
Industry Practice award in 2013
from the Nuclear Energy Institute for
their fuel failure detection process.
In 2013, our EWC nuclear fleet
capacity factor was 89 percent,
which was below our 2013 goal.
Unplanned equipment repairs
at Indian Point Units 2 and 3,
Palisades and Pilgrim impacted
our performance last year.
Hedging
Hedging is an important tool to
meet EWC’s commodity price
risk management objective. While
meeting this underlying objective,
we strive to minimize hedging
costs, protect against secondary
risks such as liquidity and damages,
and align our hedge positions
consistent with our dynamic point
of view. We adjust our hedging
products as market conditions
change and our point of view
evolves. During periods where
we are bullish, we strive to utilize
hedge products that allow for
upside consistent with our point of
view. Several years ago we adopted
an asymmetric hedging approach
using products that offered
downside protection and some
ability to receive higher prices if
the market moved up. As a result,
in 2013 and early 2014, we were
able to capitalize on short-term,
weather-driven price spikes. Longer
term prices remain low, and we
continue to be bullish relative to
these levels.
93% 90% 93% 89% 89%
EWC NUCLEAR FLEET
CAPACITY FACTORS
2009 2010 2011 2012 2013
43% 51%
28%
56% 54%
EWC NON-NUCLEAR
FLEET CAPACITY FACTORS
2009 2010 2011 2012 2013
Generation
EMPLOYEE ENGAGEMENT
Throughout 2013, EWC leaders engaged with employees through meetings, online communications and other vehicles to ensure they understand
the vision, mission and areas of focus for the business, as well as their roles in supporting the organization and their accountability for achieving
performance goals.