Aligning CSR with Corporate Business Objectives Patty Riddlebarger Entergy Corporation

1. Aligning CSR with Corporate Business Objectives Patty Riddlebarger Entergy Corporation

2. Who is Entergy? Electric utility and power generation company Headquartered in New Orleans, LA 2.7 million customers in AR, LA, TX and MS Wholesale nuclear power generation in NY, MASS, VT and MI.

3. Who Are Our Customers? • 20 – 30 % of our customers live at or below the poverty level • 40 % of children in • New Orleans live in • poverty • We serve 3 of 10 of • nation’s counties with • highest child poverty • rates

4. Who Are Our Customers? • MS ranks last in household income • LA ranks 49th • AR ranks 47th • TX is 42th

5. Corporate Social Responsibility Our Scope: • Corporate Giving • Entergy Charitable Foundation • Volunteerism • Low Income Initiatives Customer Assistance Fund Low Income Customer Advocacy Public Policy Advocacy

6. Our Goals • To serve the communities where Entergy operates • To advocate internally and externally on behalf of low income customers • Advance corporate and business unit objectives through development and implementation of low income and charitable giving strategies that support business strategies

7. Contributions • In 2007, Entergy and the Entergy Charitable Foundation funded almost 3,000 grant requests totaling more than $14.5 million in cash contributions

8. Entergy Charitable Foundation • Founded in 2000 • Focused on helping individuals and families break the bonds of poverty • Education, literacy, job training, housing, asset building • Awarded grants totaling more than $2 million in 2007

9. What should be so simple? • What is the most pressing need in our communities? • If Entergy could do one thing to make a difference in our communities what would it be? Cancer Hunger Education Unemployment Substance Abuse Poverty healthcare Homelessness Youth Programs

10. Developed a strategic approach to corporate giving and the charitable foundation Created “Becoming the Best,” an initiative to make Entergy a recognized environmental leader in the business community Created a Low Income Initiative, centered around our “most important customers” Social Responsibility: Entergy’s Approach

11. Step: OneCommitment from the Top

12. “The Most Important Customer” Wayne LeonardCEO Entergy Corporation Sept./October 2002

13. Entergy’s Role • Since 1999 Entergy has committed $40 million in the fight against poverty • Low Income Initiatives • Low Income Champs • Low Income Summits • Entergy Charitable Foundation • Public policy advocacy • Fundraising

14. It was not always this way • Entergy indifferent • Low Income customers were seen as burden • Bad credit and collection and shut-off policies • Insensitive (if not harsh) rate design methodologies • Sat in silence as issues were debated • Pointed to regulators or elected officials as the reasons nothing was accomplished

15. Step: 2Employee Engagement Overcoming obstacles and achieving buy-in

16. Why low income? • It’s the right thing to do • It makes good business sense • More than 20 percent of our customers live in poverty • They represent more than $631 million in revenues annually

17. Low Income Customer Profile • Loyal, hard working and responsible • Pay their bills on time (particularly elderly) • Rarely complain • High satisfaction scores

18. Low Income Customer Profile • Energy costs can consume up to 40 percent of their income

19. Poverty Costs Per Household = $20,000 annually

20. It can be a matter of life & death • The Center for Disease Control says that from 1979 to 1999, excessive heat exposure caused 8,015 deaths in the United States • More people die every year from heat-related illnesses than from cold

21. Employee Engagement • Low income goals included in annual performance review for company presidents • Low income champs for each state • Volunteerism efforts – in 2007more than 3,000 homes weatherized; 5,000 weatherization kits and 25,000 CFLs distributed

22. Low Income Summits • Created in 1999 • Forum for low income advocates to discuss common problems, solutions • Help us know how to best help low income customers • More than 1,000 advocates attend annual summits

23. Step 3: Program Design

24. What are our Low Income Strategies? • Increase the flow of assistance funds from all sources • Move low income customers to economic self-sufficiency • Provide customers with tools to help manage their bills

25. Increasing the flow of assistance funds from all sources

26. Lobbying for LIHEAP Low Income Advocates March on the Hill Washington Action LIHEAP Day 2006

27. Lobbying for LIHEAP yields big results • 88,900 customers received assistance • 18.5 million in revenues generated

28. The Power to CARE Fund CAF Funds Raised 2003 - 2007

29. Helping customers achieve economic self-sufficiency

30. Entergy Charitable Foundation • Founded in 2000 • Focused on helping individuals and families break the bonds of poverty • Education, literacy, job training, housing, asset building • Award grants totaling more than $2 - 3 million annually

31. Entergy/IRS Partnership Energy discovered that many people in our area didn’t know about or understand EITC The purpose of Entergy's effort is simple: Make sure low-income customers know: About the EITC program, Where to go for more information, and How they find out if they quality The goal is to get as many qualified people to apply for the program as possible

32. Outreach Implementation and Results Placed a message on Entergy’s Interactive Voice Recording (IVR) Added a link to the IRS Web site from entergy.com Low-income champions sent e-mail blasts to low-income advocates and faith-based contacts Provided posters and brochures at our customer service centers for low-income advocates and customers Contributed grants for media support Trained phone center operators to ask if callers qualified

33. Distributed 2.3 millionbill inserts Provided free IRS “EITC Kits” to casemanagers, agenciesand volunteers Stories in “AdvocatePower” newsletter OutreachImplementation and Results

34. Value of EITC efforts • 2007 Refunds in states served by Entergy $7 billion – this is a 17% increase over 2002, when Entergy first became involved in promoting EITC • 60% of EITC recipients report using part of their refunds to pay utility bills

35. Mid South IDA Initiative • Partnership with Foundation for Mid South • $1.6 million investment • IDA programs created in 66 communities served by Entergy • More than 19,000 individuals directly impacted

36. Family IDA Savings Goals 17% 37% 20% 26%

37. ROI for Entergy • Prepared workforce • Increased disposable income • Economic development • Awards & recognition • Corporate image • Reduced bill delinquency

38. Mid South IDA Initiative Multiplier Effect • Private Foundation Sources • Federal Sources • State Sources • For-Profit Sources • Ripple Effect $1.6 million $69 million

39. Early Childhood Education • For every $1 invested in high quality early childhood education, society reaps $9 in benefits. • Entergy funded a series of studies • The Economics of Education • Miles to go Arkansas • Miles to go Louisiana • Miles to go Mississippi • Studies are being used as catalysts to unite the business community in support of early childhood education

40. Early Childhood Education • Action: Entergy led charge in AR for an increase of $50 million in state funding pre-K for low income families. • Result: AR has emerged as a new national leader in pre-K. Projected economic impact: $15 billion by 2035

41. Early Childhood Education • Action: Entergy collaborated with the Southern Education Foundation, Success by Six and other organizations to push for increased funding for Pre-K • Result: LA legislature approved universal Pre-K in 2008

42. Affordable Housing • Habitat for Humanity homes • In LA, MS, NY and TX • More than 300 employees involved; 10,000 hours • Helped 22 families achieve the dream of homeownership • Awarded more than $600,000 Habitat affiliates nationwide

43. Provide customers with tools to help them manage their bills

44. Traditional Outreach Tools • # Literature requests fulfilled • # Homes weatherized • # Weatherization kits distributed • # CFLs distributed • “Beat the Heat” fan and air conditioning unit giveaways • Weatherization/energy efficiency workshops

45. LIHEAP: Getting the Word Out Pilot launched to notify eligible customers through automated phone calls

46. LIHEAP: Getting the Word Out Results: • Revenues from LIHEAP in pilot area have tripled • Uncollectibles are reduced • Costs for ALL customers lowered • Shareholder value is maximized

47. Credit Power • Easy Start Package-- Removes barriers for low income customers who are establishing utility service for the first time • Independence Package -- Removes barriers for low income first time homeowners/welfare to work • Reconnect Package -- Helps low income customers recover from prior debts while maintaining dignity

48. Credit Power • Safety Net Package– provides assistance for low income customers experiencing crisis that prevents them from making utility payment • Senior Service Package -- ensures that low income seniors do not sacrifice quality of life

49. Let’s talk turkey Photo courtesy John Ford National Wild Turkey Federation

50. Win-Win-Win Solutions • Entergy right of ways cleared at no expense to ratepayers • Increased service reliability • Increased customer satisfaction • Natural habitats restored • Costs are reduced • Shareholder value maximized