Entergy Response to Hurricanes Katrina & Rita

1. Entergy Response to Hurricanes Katrina & Rita MAY 2, 2006 BOBBY SINGLETARY

2. We’re experienced at restoration… • Andrew (Aug 1992) 250,000 customers • Ice Storm (Feb 1994) 240,000 customers • Georges (Sep 1998) 260,000 customers • Dual Ice Storms (Dec 2000) 236,000 and 247,000 • Lili (Oct 2002) 243,000 customers • Cindy (Jul 2005) 289,000 customers

3. …are recognized at being good at it… • Received the EEI outage response or outage assistance award for the last eight consecutive years • Only utility to receive an award every year they have been offered by EEI

4. …and we strive to continuously improve. • Annual drills:April 2005 drill scenario was Cat 4 impacting New Orleans with 20’ flooding • Meetings with local officials & media (May 2005) • Plan Improvements - Spring 2005: • - upgraded evacuation process - internal “IE StormNet” launched - upgraded external web site - improved outage mapping applications - incorporated lessons of 2004 Florida storms

5. Katrina’s projected path changed late After crossing lower FL peninsula, originally projected to hit panhandle… …but moved much further west.

6. Unprecedented impact on Entergy1.1 million customers out; severe flooding 800,000 Louisiana outages Landfall August 29, 2005 Katrina Storm surge approaches Michoud plant, photo by Entergy Michoud plant manager Don McCroskey 300,000 Mississippi outages

7. The destruction was widespread… 17,000 square miles affected in Louisiana,20,000 in Mississippi

8. …and our largest city flooded.

9. New Orleans Underwater

10. Katrina’s unique challenges… • Corporate HQ evacuated • Employees’ homes destroyed • Resources pre-dedicated to Florida • Security threats in New Orleans • Flooded gas facilities • Contractors’ bankruptcy fears • Inoculations for workforce • Severe substation flooding • Communications knocked out • Massive scale/logistics challenge • Gasoline/Diesel shortages • Inaccessibility • DOE/DHS coordination & reporting

11. …were followed by Rita on Sept. 24… Initial landfall at TX/LA border as predicted… …but tracked northeast after landfall, damaging all jurisdictions.

12. Rita hit southeast Texas & southwest LA hard, but impacted every Entergy jurisdiction. Louisiana Out Out Out Texas In In In - - - AM/FM Snapshot of TX & southwest LA Distribution Lines 0730 9/25/05 710,000 out in Texas & Louisiana Additional 60,000 out in Arkansasand 30,000 out in MS

13. …and Rita’s challenges. • Second worst storm in company’s history - 800,000 outages • Massive damage to transmission system; generation plants damaged & isolated • Three days of rolling blackouts for 142,000 Texas customers • Exhausted workforce • Another huge logistical challenge • Material shortages following Katrina • Continued coordination with DOE • Texas PUC “Tiger Team”

14. Restoration • “SAFETY TRUMPS SPEED” • 1.87 million total electric customers • 145,000 gas customers • 28,900 Distribution poles replaced • 522 Transmission lines out of service • 706 Substations out of service • 29 fossil/1 nuclear units shut down

15. A monumental support effort Katrina … 10,200 tool workers 100 companies from 28 states 3500 support personnel Rita … 13,000 tool workers 130 companies from 32 states 4500 support personnel

16. Combined Restoration Profile

17. Safety Successes • Severity of Accidents • 74% MA • Great Team Work between Supervisors & Safety Team • Contracting with the following services to address Health Issues / Concerns • Medcor; Acadian Ambulance • First Aid; Vaccines • US Risk Management • Environmental Issues • Acquiring Additional Resources • Trainers; Retirees; Off System & Contractor Safety Specialists • Communications • Company Handheld Radios • Blackberries

18. Safety Improvement Opportunities • 3 Fatalities • Contractors • Need to modify the method of procuring contractors by reviewing LWDIR / RAI • Need to revise contractor contract to include, as a minimum, what is needed to work on Entergy’s system • PPE • Tools & Equipment • Work w/Utility Industry to promote Powersafe Training for all contractors • Communications • Improve Safety Orientations • Need improved or additional means of communications (i.e. satellite radios for safety leads; company handheld radios for each safety rep) • Logistics • Work closely w/Logistics on preparing Staging Sites to address • #1 OSHA Recordable (i.e. bug bites) • Safety Issues (i.e. Pole Pile Set-up; Traffic Plans)

19. Human Resources challenges met… • Severity of Hurricane Katrina and flooding meant accounting for all employees in affected areas - 119 unaccounted for by Sept. 9; all located by Sept. 14 • Helped employees locate missing family members • Continued salary and benefits for all employees • Monitored and responded to employee hotline • Facilitated time off for employees to check on homes • Expanded on-site counseling • Temporarily modified medical and pharmacy procedures and requirements • Temporarily modified savings plan to allow easier access to funds

20. Logistical Successes Katrina Logistics Teams Ready Logistics Plans in place and drilled. Contacted Logistics suppliers prior to event Staging area locations identified. Logistics supplies and equipment staged prior to storm. Flexible When staging sites were lost to Gov’t agencies, new sites activated. New logistics equipment suppliers found. New forms of alternate lodging identified and implemented. Rita “System-wide” Logistics Effort Additional logistics support teams provided from several sister companies. Single point of contact for nuclear and fossil generation logistics resources. Common System Logistics Plan helped all groups work together. “Self-contained” Mutual Assistance Crews Several utilities came prepared to support themselves. Helped reduce workload on the Host utility.

21. Logistical Challenges Katrina Local logistics vendor network seriously impacted by hurricane. NOLA mass evacuation compounded lodging problems for restoration workers. Communications infrastructure seriously damaged well inland from the coast. Strong competition from other utilities, businesses, and governmental agencies for needed logistics equipment and supplies. Fuel shortages compounded problem of moving acquired logistics equipment and supplies. Rita Many logistic resources already committed to Katrina restoration. Houston mass evacuation compounded lodging problems for restoration workers. Gov’t agencies acquired some of our primary staging sites. The limited local commercial lodging was seriously damaged. Primary logistical staff members already engaged in Katrina, other employee volunteers had to meet the new challenge. Very long period of restoration support effort for both events (45-50 days without break).

22. Logistical Stats

23. Tent City Images C. Parker Center – Port Arthur, TX Camp Katrina – Waterford, LA

24. Katrina and Rita’s Phone Center & Credit Challenges • Katrina • 1.99 million customer calls received; 46,708 calls received per hour at the peak • New Orleans call center vacated for 23 days • Gretna Data Center loss: • Lost 50 percent of call handling capacity for 5 days • Lost connectivity to outsource call center in Atlanta at peak of storm • Stopped all credit and collection activities from 8/25 through the week of 10/3 – no disconnect notices delivered, no courtesy calls made, and no disconnects for non-payment worked • Rita • 1.23 million customer calls received • Beaumont call center vacated for 11 days • Credit and collection activities delayed further in the newly affected areas. No non-payment disconnections made until Nov. 1 in either the impacted or non-impacted areas. • Rolling outages in Texas due to generation/ transmission restraints and load complicated answering customer questions and providing accurate information

25. Key external communications strategies • Good restoration & good communications go hand inhand – if one fails, they both fail • Whole company must speakwith one voice, using same factsand same talk points • Select key messages every day and emphasize them • Open up the restoration process completely to media scrutiny • Ask advice early from our peer companies in the “storm belt”

26. Key messages to rally our employees • Everyone still has a job, a paycheck and full benefits • We are trying to find all employees to make sure they are safe • In restoring power, no employee will be put in harm’s way • Assistance is at hand for everything from financial aid and stress counseling to filling prescriptions, replacing clothing and filing insurance claims and finding housing • Entergy established The Power of Hope Fund and other assistance programs

27. Media Treatment

28. Media Treatment The Clarion-Ledger, Jackson, MS