March 8, 2007March 8, 2007

Robert D. SloanExecutive Vice President

& General Counsel Entergy Corporation

Hurricane Katrina: The Entergy Experience

August 26: Forecast for Katrina’s 2nd Landfall Shifted 310 Miles to New Orleans

After crossing lower Florida peninsula, Panhandle hit was expected…

…but track abruptly moved much farther west.

Aug. 25

Aug. 26

Forecast Track on August 26 at 3:00 a.m.

Forecast Track on August 26 at 9:00 p.m.

Forecast

Track

Forecast

Track

CAT 5

CAT 4

August 29: Hurricane Katrina Made Its Second Landfall as Strong Category 4

New Orleans, LA

Baton Rouge, LA Gulfport, MS

Biloxi, MS

Mobile, AL

Wind Field Image Map on August 29 at 4:00 a.m.

Louisiana Mississippi Alabama

Tornado activitywithin thestorm

115 miles 126 miles196 miles

Sustained Winds138-150 mph

46-58 mph

CAT 3

CAT 4

CAT 5

August 30: Levees Broke and Floodwaters Inundated New Orleans and Vicinity

Katrina Storm Surge Approaches Entergy’s Michoud Plant

Post-Katrina Flooding in New Orleansand Surrounding Areas

Photo by Entergy’s Michoud plant manager Don McCroskey

Outages Peaked at More Than One Million Customers

Peak Outage Map for Louisiana and MississippiDue to Hurricane Katrina

Out ofof Service (Red) Not Affected (Green)

Flooding

Damage Exceeded Anything Entergy Had Ever Experienced

Extensive flooding and wind damage affected Entergy’s generation, transmission and distribution infrastructure.

Customer outages peaked at over one million customers, more than any previous storm in Entergy’s history.

Affected Area Total Outages

Generation Units Offline 18

Transmission Lines Out 182

Transmission Substations Out 263

Distribution Poles Destroyed 17,400

Distribution Circuit Miles Affected

28,500

Customer Outages (millions) 1.1

Outages at Peak Due to Hurricane Katrina

…and our largest city flooded.

New Orleans elevation cross-section

Lower 9th Ward

New Orleans East

Lakeview

Mid-City

CBD

Early Estimates: 123,000 Will Be Unable to Accept Service for an Extended Period

West Bank Network (not depicted) West Bank Network (not depicted) 6,0006,000

East Orleans Network East Orleans Network 64,00064,000

Orleans Orleans NetworkNetwork23,00023,000

Chalmette Network Chalmette Network 30,00030,000

Storm Surge

Storm Surge

Customers affected by flood waters

Lake Pontchartrain

St. Bernard

Challenges Faced by Entergy New Orleans

The first priority is the safe restoration of service following the destruction to infrastructure caused by Hurricane Katrina.

1

Massive restoration costs for Entergy New Orleans, Inc. (ENOI) and only partial return of customers could more than double electricity rates.

2

ENOI’s customers, over 20% of which were below poverty-level before Katrina, cannot absorb higher rates of this magnitude.

3

Federal assistance is required soon to protect customers from this severe cost burden.

4

The level of rates required absent Federal assistance will stifle business development and the repopulation of New Orleans, which in turn will cripple the opportunity for economic recovery in this region.

5

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

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

Entergy New Orleans’ Restoration CostsAre Highest Relative to Company Size

In comparing expected costs across the three most affected jurisdictions, the potential costs at Entergy New Orleans represent a substantial portion of the entity’s net plant, compared to 10% or less at Entergy Louisiana and Entergy Mississippi.

This places a substantial burden on New Orleans customers.

Entergy New Orleans Entergy Louisiana Entergy Mississippi

Estimated Restoration Costs Due to Hurricane Katrina$ Million

Total Expected Cost

Total Net Plant

260-325 325-37575-90

480

3,700

1,600

% of Plant 54% - 68% 9% - 10% 5% - 6%% of Equity 149% - 186% 30% - 35% 13% - 15%

480

Interrelated Factors Will Shape ENOI’s Future – All Options Are Being Considered

Outcome of Today’s Uncertainties

Determines Rate Levels

Includes:

• Regional economic recovery

• Repopulation of city

• Utility service level desired and ability to pay for it

• Insurance proceeds

• Federal assistance

• Regulatory recovery mechanisms

Factors:

• Number of customers and load

• Cost structure of business

• Sustainable capital structure

And Shapes ENOI’s Exit from Bankruptcy

Outcomes:

• Entergy operates ENOI

• Entergy sells ENOI

• ENOI municipalized

Key Factors in ENOI Bankruptcy Process