11

EntergyEntergy Response Response

to to HurricanesHurricanes

Katrina & Rita Katrina & Rita

MAY 2, 2006MAY 2, 2006

BOBBY SINGLETARY

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We’re experienced at restoration…We’re experienced at restoration…

Andrew (Aug 1992) 250,000 customersAndrew (Aug 1992) 250,000 customers

Ice Storm (Feb 1994) 240,000 customersIce Storm (Feb 1994) 240,000 customers

Georges (Sep 1998) 260,000 customers Georges (Sep 1998) 260,000 customers

Dual Ice Storms (Dec 2000) 236,000 and 247,000 Dual Ice Storms (Dec 2000) 236,000 and 247,000

Lili (Oct 2002) 243,000 customersLili (Oct 2002) 243,000 customers

Cindy (Jul 2005) 289,000 customersCindy (Jul 2005) 289,000 customers

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……are recognized at being good at it…are recognized at being good at it…

Received the EEI outage response or Received the EEI outage response or outage assistance award for the last outage assistance award for the last eight consecutive yearseight consecutive years

Only utility to receive an award every Only utility to receive an award every year they have been offered by EEIyear they have been offered by EEI

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……and we strive to continuously improve.and we strive to continuously improve.

Annual drills:Annual drills: April 2005 drill scenario was Cat 4 April 2005 drill scenario was Cat 4 impacting New Orleans with 20’ floodingimpacting New Orleans with 20’ flooding

Meetings with local officials & mediaMeetings with local officials & media (May 2005) (May 2005)

Plan Improvements - Spring 2005:Plan Improvements - Spring 2005:

- upgraded evacuation process - upgraded evacuation process - internal “IE StormNet” launched - internal “IE StormNet” launched - upgraded external web site - upgraded external web site - improved outage mapping applications - improved outage mapping applications - incorporated lessons of 2004 Florida storms - incorporated lessons of 2004 Florida storms

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Katrina’s projected path changed lateKatrina’s projected path changed late

After crossing lower FL peninsula, originally projected to hit panhandle…

…but moved much further west.

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Unprecedented impact on EntergyUnprecedented impact on Entergy1.1 million1.1 million customers out; severe flooding customers out; severe flooding

800,000 Louisiana outages

300,000 Mississippi

outages

Katrina Storm surge approaches Michoud plant, photo by Entergy Michoud plant manager Don

McCroskey

Landfall August 29, 2005

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The destruction was widespread…The destruction was widespread…

17,000 square miles affected in Louisiana,20,000 in Mississippi

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……and our largest city flooded.and our largest city flooded.

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New Orleans UnderwaterNew Orleans Underwater

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Katrina’s unique challenges…Katrina’s unique challenges…

Corporate HQ evacuatedCorporate HQ evacuated

Employees’ homes destroyedEmployees’ homes destroyed

Resources pre-dedicated to FloridaResources pre-dedicated to Florida

Security threats in New OrleansSecurity threats in New Orleans

Flooded gas facilitiesFlooded gas facilities

Contractors’ bankruptcy fearsContractors’ bankruptcy fears

Inoculations for workforceInoculations for workforce

Severe substation floodingSevere substation flooding

Communications knocked outCommunications knocked out

Massive scale/logistics challengeMassive scale/logistics challenge

Gasoline/Diesel shortagesGasoline/Diesel shortages

InaccessibilityInaccessibility

DOE/DHS coordination & reportingDOE/DHS coordination & reporting

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……were followed by Rita on Sept. 24…were followed by Rita on Sept. 24…

Initial landfall at TX/LA border as predicted…

…but tracked northeast after landfall, damaging all jurisdictions.

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Rita hit southeast Texas & southwest LA hard,Rita hit southeast Texas & southwest LA hard, but impacted but impacted everyevery Entergy jurisdiction. Entergy jurisdiction.

-Out

In-Out

In

AM/FM Snapshot of TX & southwest LA Distribution Lines 0730 9/25/05

-Out

In

Louisiana

Texas

710,000 out in Texas & Louisiana

Additional 60,000 out in Arkansasand 30,000 out in MS

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……and Rita’s challenges.and Rita’s challenges.

Second worst storm in company’s Second worst storm in company’s history - 800,000 outageshistory - 800,000 outages

Massive damage to transmission Massive damage to transmission system; generation plants damaged & system; generation plants damaged & isolatedisolated

Three days of rolling blackouts for Three days of rolling blackouts for 142,000 Texas customers142,000 Texas customers

Exhausted workforceExhausted workforce

Another huge logistical challengeAnother huge logistical challenge

Material shortages following KatrinaMaterial shortages following Katrina

Continued coordination with DOEContinued coordination with DOE

Texas PUC “Tiger Team”Texas PUC “Tiger Team”

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RestorationRestoration• “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

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A monumental support effortA monumental support effort

Hurricane Katrina Nationwide ResponseHurricane Katrina Nationwide Response

Rita …13,000 tool workers130 companies from32 states 4500 support personnel

Katrina …10,200 tool workers100 companies from 28 states3500 support personnel

Hurricane Rita Nationwide ResponseHurricane Rita Nationwide Response

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Combined Restoration ProfileCombined Restoration Profile

Hurricanes Katrina and Rita RestorationsCustomer Outage Profile by Restoration Days

(Outages as of 4PM Each Day)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

LF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

Restoration Days

Cu

sto

me

rs O

ut

Return to Service Customers

Reconstruction Customers (Estimated 122,700)

Rita Landfall

Katrina Landfall

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Safety SuccessesSafety Successes

Severity of AccidentsSeverity of Accidents 74% MA74% MA

Great Team Work between Supervisors Great Team Work between Supervisors & Safety Team & Safety Team

Contracting with the following services Contracting with the following services to address Health Issues / Concerns to address Health Issues / Concerns

Medcor; Acadian AmbulanceMedcor; Acadian Ambulance First Aid; Vaccines First Aid; Vaccines

US Risk ManagementUS Risk Management Environmental IssuesEnvironmental Issues

Acquiring Additional Resources Acquiring Additional Resources Trainers; Retirees; Off System & Contractor Safety Trainers; Retirees; Off System & Contractor Safety

SpecialistsSpecialists

CommunicationsCommunications Company Handheld RadiosCompany Handheld Radios BlackberriesBlackberries

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Safety Improvement OpportunitiesSafety Improvement Opportunities3 Fatalities3 FatalitiesContractorsContractors

Need to modify the method of procuring Need to modify the method of procuring contractors by reviewing LWDIR / RAI contractors by reviewing LWDIR / RAI

Need to revise contractor contract to include, Need to revise contractor contract to include, as a minimum, what is needed to work on as a minimum, what is needed to work on Entergy’s systemEntergy’s system

PPE PPE Tools & EquipmentTools & Equipment

Work w/Utility Industry to promote Powersafe Work w/Utility Industry to promote Powersafe Training for all contractorsTraining for all contractors

CommunicationsCommunications Improve Safety OrientationsImprove Safety Orientations Need improved or additional means of Need improved or additional means of

communications (i.e. satellite radios for safety leads; company handheld communications (i.e. satellite radios for safety leads; company handheld radios for each safety rep)radios for each safety rep)

LogisticsLogistics Work closely w/Logistics on preparing Staging Sites to addressWork closely w/Logistics on preparing Staging Sites to address

#1 OSHA Recordable (i.e. bug bites)#1 OSHA Recordable (i.e. bug bites) Safety Issues (i.e. Pole Pile Set-up; Traffic Plans)Safety Issues (i.e. Pole Pile Set-up; Traffic Plans)

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Severity of Hurricane Katrina and Severity of Hurricane Katrina and flooding meant accounting for all flooding meant accounting for all employees in affected areas - 119 employees in affected areas - 119 unaccounted for by Sept. 9; all unaccounted for by Sept. 9; all located by Sept. 14located by Sept. 14

Helped employees locate Helped employees locate missing family membersmissing family members

Continued salary and benefits for Continued salary and benefits for all employeesall employees

Monitored and responded to Monitored and responded to employee hotlineemployee hotline

Facilitated time off for employees Facilitated time off for employees to check on homesto check on homes

Expanded on-site counselingExpanded on-site counseling

Temporarily modified medical Temporarily modified medical and pharmacy procedures and and pharmacy procedures and requirementsrequirements

Temporarily modified savings Temporarily modified savings plan to allow easier access to plan to allow easier access to fundsfunds

Human Resources challenges met…Human Resources challenges met…

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Logistical SuccessesLogistical Successes

KatrinaKatrina

Logistics Teams ReadyLogistics Teams Ready Logistics Plans in place and Logistics Plans in place and

drilled.drilled. Contacted Logistics suppliers Contacted Logistics suppliers

prior to eventprior to event Staging area locations identified.Staging area locations identified. Logistics supplies and Logistics supplies and

equipment staged prior to storm.equipment staged prior to storm.

Flexible Flexible When staging sites were lost to When staging sites were lost to

Gov’t agencies, new sites Gov’t agencies, new sites activated.activated.

New logistics equipment New logistics equipment suppliers found.suppliers found.

New forms of alternate lodging New forms of alternate lodging identified and implemented. identified and implemented.

RitaRita

““System-wide” Logistics EffortSystem-wide” Logistics Effort Additional logistics support teams Additional logistics support teams

provided from several sister provided from several sister companies.companies.

Single point of contact for nuclear Single point of contact for nuclear and fossil generation logistics and fossil generation logistics resources.resources.

Common System Logistics Plan Common System Logistics Plan helped all groups work together.helped all groups work together.

““Self-contained” Mutual Assistance Self-contained” Mutual Assistance CrewsCrews

Several utilities came prepared to Several utilities came prepared to support themselves.support themselves.

Helped reduce workload on the Helped reduce workload on the Host utility.Host utility.

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Logistical ChallengesLogistical ChallengesKatrinaKatrina

Local logistics vendor network Local logistics vendor network seriously impacted by seriously impacted by hurricane.hurricane.

NOLA mass evacuation NOLA mass evacuation compounded lodging problems compounded lodging problems for restoration workers.for restoration workers.

Communications infrastructure Communications infrastructure seriously damaged well inland seriously damaged well inland from the coast.from the coast.

Strong competition from other Strong competition from other utilities, businesses, and utilities, businesses, and governmental agencies for governmental agencies for needed logistics equipment and needed logistics equipment and supplies.supplies.

Fuel shortages compounded Fuel shortages compounded problem of moving acquired problem of moving acquired logistics equipment and logistics equipment and supplies.supplies.

RitaRita

Many logistic resources already Many logistic resources already committed to Katrina restoration.committed to Katrina restoration.

Houston mass evacuation Houston mass evacuation compounded lodging problems compounded lodging problems for restoration workers.for restoration workers.

Gov’t agencies acquired some of Gov’t agencies acquired some of our primary staging sites.our primary staging sites.

The limited local commercial The limited local commercial lodging was seriously damaged.lodging was seriously damaged.

Primary logistical staff members Primary logistical staff members already engaged in Katrina, other already engaged in Katrina, other employee volunteers had to meet employee volunteers had to meet the new challenge.the new challenge.

Very long period of restoration Very long period of restoration support effort for both events support effort for both events (45-50 days without break).(45-50 days without break).

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Logistical StatsLogistical Stats

Hurricane Hurricane KatrinaKatrina

HurricaneHurricane

RitaRitaLandfallLandfall Aug. 29, 2005Aug. 29, 2005 Sep. 24, 2005Sep. 24, 2005

Restoration DaysRestoration Days 28 days28 days 21 days21 days

Customers Customers AffectedAffected

1,091,4001,091,400 800,010800,010

Major Staging Major Staging Sites CreatedSites Created

26 sites26 sites 20 sites20 sites

““Tent Cities” Tent Cities” EstablishedEstablished

6 with 4,500 beds6 with 4,500 beds 6 with 4,750 beds6 with 4,750 beds

Meals ServedMeals Served Over 715,000Over 715,000 Over 551,000Over 551,000

Bed Nights Bed Nights Acquired Acquired

Over 224,000Over 224,000 Over 255,000Over 255,000

Logistics Workers Logistics Workers InvolvedInvolved

Over 185Over 185 Over 145Over 145

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Tent City ImagesTent City Images

Camp Katrina – Waterford, LA

C. Parker Center – Port Arthur, TX

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Katrina and Rita’s Phone Center & Credit ChallengesKatrina and Rita’s Phone Center & Credit Challenges

KatrinaKatrina

1.99 million customer calls received; 46,708 calls received 1.99 million customer calls received; 46,708 calls received per hour at the peakper hour at the peak

New Orleans call center vacated for 23 daysNew Orleans call center vacated for 23 days

Gretna Data Center loss:Gretna Data Center loss:

Lost 50 percent of call handling capacity for 5 daysLost 50 percent of call handling capacity for 5 days

Lost connectivity to outsource call center in Atlanta Lost connectivity to outsource call center in Atlanta at peak of stormat peak of storm

Stopped all credit and collection activities from 8/25 Stopped all credit and collection activities from 8/25 through the week of 10/3 – no disconnect notices delivered, through the week of 10/3 – no disconnect notices delivered, no courtesy calls made, and no disconnects for non-no courtesy calls made, and no disconnects for non-payment workedpayment worked

RitaRita

1.23 million customer calls received1.23 million customer calls received

Beaumont call center vacated for 11 daysBeaumont call center vacated for 11 days

Credit and collection activities delayed further in the Credit and collection activities delayed further in the newly affected areas. No non-payment disconnections made newly affected areas. No non-payment disconnections made until Nov. 1 in either the impacted or non-impacted areas.until Nov. 1 in either the impacted or non-impacted areas.

Rolling outages in Texas due to generation/ transmission Rolling outages in Texas due to generation/ transmission restraints and load complicated answering customer restraints and load complicated answering customer questions and providing accurate informationquestions and providing accurate information

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Key external communications strategiesKey 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 Ask advice early from our peer companies in the “storm belt” belt”

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Key messages to rally our employeesKey messages to rally our employees

Everyone still has a job, a paycheck and full benefitsEveryone still has a job, a paycheck and full benefits

We are trying to find all employees to make sure they are We are trying to find all employees to make sure they are safe safe

In restoring power, no employee will be put in harm’s wayIn restoring power, no employee will be put in harm’s way

Assistance is at hand for everything from financial aid Assistance is at hand for everything from financial aid and stress counseling to filling prescriptions, replacing and stress counseling to filling prescriptions, replacing clothing and filing insurance claims and finding housing clothing and filing insurance claims and finding housing

Entergy established The Power of Hope Fund and other Entergy established The Power of Hope Fund and other assistance programsassistance programs

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Media TreatmentMedia Treatment

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Media TreatmentMedia Treatment

The Clarion-Ledger, Jackson, MS