Schedule Experimental Energy Reduction (EER) updated 2005

1. Schedule Experimental Energy Reduction (EER)updated 2005 Note: This program is available to qualified participants within the EntergyArkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

2. $2,000 Day Ahead $1,800 Energy ($/MWH) $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 9 1 5 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 Highest to Lowest Summer Weekday The Experimental Energy Reduction Program (EER): What Is The EER Program, and Why Is Entergy Pursuing This? • The EER Program is designed to enable the market mechanics necessary to permit a broader range of • customers to participate in a curtailment program. • The EER Program provides an economic incentive to qualified customers to release Entergy from its obligation • to supply during periods of highly volatile market prices, or when supply is severely constrained (< 15 days). • EER offers another layer of protection for Entergy’s customers against the risks of exposure to higher fuel costs. Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

3. The Experimental Energy Reduction Program (EER): Program Features • The program hours are the 4 hour "super peak” in summer and winter • 2PM - 6 PM CDT May – September • 5 PM – 9 PM prevailing time January – April & October – December • The Customer must participate all 4 hours and at the same pledged demand • during each hour (minimum pledge is 150 kW). • Entergy’s posted price will be the same for all 4 hours. • Market Replacement Charges (penalties at a rate of 2 X posted prices) apply • for each kW that is 90% below pledged demand, measured during each • hourly interval. • Entergy provides the opportunity for a waiver from Market Replacement Charges, • through a “Relief From Operational Failure” provision (2 waivers per program period). • The waiver applies to the entire four hour period, and if exercised the customer also • forgoes the credit. • There are Maximum Energy Reduction Payments of 130% of pledged • demand. The customer receives no further credit after surpassing 130% of • their pledged energy reduction, also measured during each hourly interval. Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

4. The Experimental Energy Reduction Program (EER): How the EER Program Operates • Entergy implements EER by posting energy prices on a web page by 8:00 AM, • day-ahead of the proposed curtailment. The customer is notified to review the offer • via email, phone call, or fax. • The customer elects participation by pledging their demand reduction for all • four hours using the web interface, and must make the commitment by • 11:00 AM day-ahead. • Entergy provides confirmation no later than 10:00 AM, day-of. • The energy reduction is measured by comparing the previous normal • business day interval metering data within the program hours with the day-of • interval metering data for those same hours (2:00 PM - 6:00 PM or 5:00 PM – 9:00 PM). • Entergy will calculate the energy reduction credit / debit and will post the net • result on the customer’s bill, usually within the next available billing cycle. Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

5. The Experimental Energy Reduction Program (EER): Example - Market Replacement Charges and Maximum Payment Provisions EER Program Example Illustration Assumption: Customer Pledges 500 kW Reduction Variables Pledged or Minimum Hourly Maximum Hourly EMO posted price Curtailable Demand Energy Reduction Energy Reduction $0.50 500 90% 130% Results: hour 1 hour 2 hour 3 hour 4 Prior Normal Business Day hourly kW 1200 1300 1250 1275 Day Of hourly kW 850 750 750 550 Net Hourly Energy Reduction 350 550 500 725 Minimum Energy Reduction (90% of Curtailable Demand) 450 450 450 450 Maximum Energy Payment (130% of Curtailable Demand) 650 650 650 650 Calculation: Market Replacement Net Credit Calculation Credit Amounts Penalty Calculations Charge Results *hour 1 350 kW X $.50 $175.00 100 kW X (2 X $.50) $100.00 $75.00 hour 2 550 kW X $.50 $275.00 none $0 $275.00 hour 3 500 kW X $.50 $250.00 none $0 $250.00 **hour 4 650 kW X $.50 $325.00 no credit > 130% $0 $325.00 Total Credit $925.00 * Customer fails to meet the minimum hourly energy reduction of 450 kW (90% of Pledge) by 100 kW. Incurs a penalty. ** Customer exceeds the maximum hourly energy payment (130% of Pledge or 650 kW) by 75 kW, receives credit only for maximum allowable. Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

6. The Experimental Energy Reduction Program (EER): Example - Market Replacement Charges and Maximum Payment Provisions Customer Incurs penalty based on 100 kW shortfall Customer’s maximum payment is 130% of pledged demand, forgoes 75 kW Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

7. The Experimental Energy Reduction Program (EER): Minimum Criteria To Participate • Customers wishing to participate must be willing to execute an Enabling Agreement with Entergy. • Customers must have interval metering at their site, or be willing to pay to have interval metering installed. • Customers will be asked to participate in a “fire drill” to determine the level of operational flexibility as needed to reduce electric loads by a minimum of 150 kW during all participating hours prior to an actual curtailment. • Participating accounts must be firm (i.e., interruptible load is not eligible to participate in EER) • The customer must have internet access, and be willing to pay any and all associated fees for this service. • If back-up generation is to be used, the customer must comply with Entergy distribution standards for wiring configuration. Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY