All forecast information reflects planning
assumptions as of December 2005.
Appendix H
Entergy System Strategic Supply Resource Plan
Plan Description
(For the planning period 2006 – 2015)
All forecast information reflects planning
assumptions as of December 2005.
Overview
This document describes the Entergy System’s (utility) Strategic Supply Resource Plan (SSRP). As
described in this document, the SSRP is based on principles and planning objectives adopted by the
Operating Committee and provides a long-term resource strategy that will transform the Entergy
System’s generation portfolio.
Contents
1. Planning Framework
2. Strategic Overview
3. Current Portfolio
4. Load Forecast
5. Retirement Strategy
6. Overview of Plan for 2006 – 2015
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
2
Part 1 – Planning Framework
All forecast information reflects planning
assumptions as of December 2005.
Supply Objectives
The supply needs that determine the resource requirements of the Operating Companies are driven by six
basic resource supply objectives:
Reliability
Provide adequate resources to meet customer peak demands with adequate
reliability.
Production Cost – Base
Load Supply Requirements
Provide low cost base load resources to serve base load requirements (the firm
load level that is expected to be exceeded for at least 85% of all hours per
year).
Production Cost – Load
Following Supply
Requirements
Provide efficient, dispatchable load following resources to serve the time
varying load shape levels that are above the base load requirement load levels.
Generation Portfolio
Enhancement
Provide a generation portfolio that is more efficient and avoids an over-reliance
on aging resources.
Risk Mitigation – Price
Stability
Mitigate the exposure to price volatility associated with uncertainties in fuel and
purchased power costs.
Risk Mitigation – Supply
Diversity
Risk Mitigation – Supply Diversity – Mitigate the exposure to major supply
disruptions that could occur from concentrated or systematic risks, for example
outages of a single generation facility.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
3
Part 1 – Planning Framework
All forecast information reflects planning
assumptions as of December 2005.
Planning Horizon
The SSRP addresses a long-term planning horizon. Other processes address tactical and annual planning supply
needs.
SSRP
Addresses long-term planning horizon. Provides indicative direction for needs
over a ten year horizon. Specific resource timing and resource participation will
be determined at the time of resource commitment.
Tactical
Planning
Process
Identifies resources needed and expected operating roles for each resource for
the forthcoming three year business planning period.
Annual
Planning
Process
Identifies resources needed and expected operating roles for the upcoming (or
current) operating year.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
4
All forecast information reflects planning
assumptions as of December 2005.
Part 1 – Planning Framework
Steps in Determining Supply Resource Needs
1.
AMOUNT
Determine the amount of capacity
needed by the System to meet peak
period reliability.
–
–
Total resource requirements for 2006 exceed long-term
controlled resources by over 2000 MWs. Needs are
increasing with load growth.
To solely address peak period reliability, resource needs
could be met by annual or seasonal purchases of
peaking/reserve capacity.
2.
TYPE
Determine the type of generation
needed by the System to serve load
shapes at the lowest reasonable cost
given current expectations and
supply options.
–
–
CCGT or solid fuel resources needed to address base load
supply requirements.
Additional CCGT and CT resources are needed to serve
load-following requirements.
3.
MIX
Determine portfolio mix of generation
resources that is consistent with
planning objectives and practical
constraints.
–
–
Power Purchase Strategy guides amount of power
purchase and mix of power purchase products
Long-term LOU resource decisions (timing, fuel type,
location, OPCO participation)
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
5
All forecast information reflects planning
assumptions as of December 2005.
Part 1 – Planning Framework
Load shape determines functional requirements.
Resource plans consider load shapes in determining the generation requirements needed for each generation
supply role.
Load Shape
Generation
Capacity
Requirements
Reserve
MW
> 0% of hours
< 50% of hours
Low Capacity Factor
Load-Following
≥ 50 % of hours
< 85% of hours
High Capacity Factor
Load-Following
≥ 85% of hours
BaseLoad
Load-following
represents 50% of
capacity, but only
approximately 20% of
energy.
Baseload energy is 80%
of total system supply.
Hours
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
6
All forecast information reflects planning
assumptions as of December 2005.
Part 1 – Planning Framework
Principles and Process for Participation Decisions
Overall Guiding Principles
 Each operating company should support a sufficient amount of generation for each supply role used
to serve its load shape.
 Resource participation decisions for new resources should consider whether each operating company
is supporting capability that can be expected to be available for coordinated economic dispatch
sufficient to meet its peak load plus provide a reserve of at least 10% (capability does not include
MSS-1 reserves).
Process
Long-term Resource
Participation Decisions
Participation in Purchased
Power in Annual Supply Plan
– Resource participation decisions are made
at time of the commitment to the resource.
– Preliminary (for planning purposes and
subject to change) projected resource
participation for future resources that are
included in the SSRP are made at the time
the resource plan is approved.
– The Operating Committee determines
participation in new resources considering
each Operating Company’s need for the
new resource’s expected supply role.
– Resource participation decisions are made
at the time of the commitment to the
resource.
– The Operating Committee can specifically
assign resources to address the specific
needs of the operating companies.
– After specific resource participation
decisions are made, additional resources
are allocated based on factors established
by the Operating Committee.
Participation in Power for
System Needs Acquired
During Operating Year
– Resource acquisitions during the operating
year are generally for system reliability or
production cost benefits.
– Because the Annual Plan provides for
adequate resources to meet the expected
system needs, additional resources
acquired during the operational year
generally will be shared based on
responsibility ratio.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
7
Part 1 – Planning Framework
All forecast information reflects planning
assumptions as of December 2005.
Factors in Operating Company Participation
Operating company participation decisions consider the following factors.
Relative Total
Production Cost
Long-term total production cost trends for each Operating Company considering both the overall
production costs and the component production costs for each major supply role.
Peak Load +10%
Reserve
Capacity Deficit
Each Operating Company’s resource capability position with regard to a standard seeking to assure
that each Operating Company supports its proportionate share of the resources that are expected to
be used in the coordinated dispatch in the System’s annual operating plan. The standard seeks to
determine participation in new resources by considering those companies who have a “Peak Load
+10% Reserve Capacity Deficit,” based upon the Operating Company’s aggregate existing resources
(excluding MSS-1 purchases) that are less than its peak load plus a minimum reserve level of 10%.
Baseload
Capacity Deficit
In determining the participation in new base load resources, each Operating Company’s resource
position with regard to having a sufficient base load generation resources to serve its base load
requirements. Participation in new base load resources would consider the “Baseload Capacity
Deficit” defined as the shortfall in base load generation required to serve the firm load level that is
expected for greater than 85% of annual hours.
Load-Following
Resource
Capacity Deficit
In determining the participation in new load-following resources, each Operating Company’s resource
position with regard to having sufficient load-following resources to serve its load requirements.
Participation in new load-following resources would consider the amount of each Operating
Company’s CCGT equivalent load-following resources or other load-following resources that are
expected to be regularly utilized in the system’s coordinated dispatch to serve the System’s load
following requirements.
Responsibility
Ratio
After each Operating Company has attained its proportionate share of the System’s total resources
and its appropriate share of each type of generation resource required for the various supply roles,
participation in any additional resources acquired for System purposes will be allocated on
responsibility ratio.
Supply Risks
Resource participation also will consider supply resource diversity, seeking to reduce the reliability
and price risks resulting from and Operating Company’s exposure to single contingency generation
outages or from its exposure to generation supplied by one fuel type.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
8
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Strategic Initiatives
The SSRP calls for transforming the Entergy System’s generation portfolio over the upcoming ten-year
planning period through two broad initiatives:
Purchased
Power
Strategy
LongTerm
Resource
Strategy
Long-term
Controlled
Resource
Strategy
 Dependence on purchased power required to meet reliability requirements
should not exceed amounts that could practically be built and financed
within a three to five year periods.
 Purchases for economic reasons are not limited.
 Implement a “portfolio approach” limited-term purchase power
procurement program.
– “Laddering” of contract expiration dates.
– Mix of supply roles.
 CCGT resources are anticipated for all OPCOs and each planning region to
address load following needs.
 Several OPCOs will require additional CCGT or solid fuel LOU resources
to address long-term base load supply needs.
 Near term LOU resources are expected to be provided primarily from
resources that are already operational or nearly complete
 Develop self-supply “options” that could be implemented within normal
construction periods, if necessary, to limit exposure to power purchases or
address potential long-term reliability issues within particular locations
such as Amite South or WOTAB.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
9
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Purchase Power Strategy Overview
Strategic Objectives
The System’s purchase power strategy seeks to accomplish the following strategic objectives:
 Maintain a diversified portfolio of purchased power contracts.
 Provide a “self controlled” alternative supply strategy for the provision of the life-of-unit resources
that can be readily compared to other opportunities to acquire long-term resources.
 Maintain an on-going RFP process to identify potential supply alternatives for each generation
supply role.
 Limit exposure to short and mid-term purchased power price uncertainty.
Strategy
 Dependence on purchased power required to meet reliability requirements should not exceed
amounts that could practically be built and financed within a three to five year period.
─
─
Excludes long-term controlled (LOU) capacity.
Purchases for economic reasons are not limited.
 Implement a “portfolio approach” limited-term purchase power procurement program.
─
Mix of short-term products with varying contract durations resulting in a “laddering” of
contract expiration dates (multi-year contracts expire at various times over three year
period.)
─
Mix of products that support needs for base load and load following supply roles.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
10
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Anticipated Reliance on Purchase Power
A significant portion of the resources in the plan will be provided by short-term purchases. Depending
on the particular year in the SSRP, the System expects to acquire approximately 800 to 1600 megawatts
(MW) of resources from short-term power purchases consisting of a variety of products. Each year the
System expects to purchase several hundred MW of dispatchable load-following generation unit capacity
from combined cycle gas turbine (“CCGT”) or combustion turbine (“CT”) generators, pursuant to multiyear unit capacity purchase agreements (“MUCPAs” or “MUCCOs”) with terms of one to three years. In
addition to multi-year unit capacity purchases, the System expects to make seasonal and annual power
purchases utilizing products such as call options, firm block-energy or liquidated damages products, or
other purchased power resources through the use of multiple procurement processes including formal
Requests for Proposals (“RFPs”).
Purchase Power Products Include
•
Long-term (life-of-unit) resources including PPAs and acquisitions
•
Limited-term products (one to three years)
•
Seasonal products
•
Monthly RFP purchases
•
Weekly RFP purchases
•
Daily purchases
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
11
All forecast information reflects planning
assumptions as of December 2005.
Part 2 – Strategic Overview
Energy Mix reflects reliance on purchase power.
Reliance on purchased power is reflected
in the changing energy mix over recent years.
2000 Supply Mix (% of total energy)
2005 Supply Mix (% of total energy)
Hydro
0%
Hydro
0%
Purchases
20%
Gas/Oil
37%
Nuclear
31%
Purchases
35%
Coal
12%
Gas/Oil
20%
GWH
Nuclear
Coal
Gas/Oil
Purchases
Hydro
Total
2000
37,059
14,799
43,073
24,188
133
119,252
Nuclear
33%
Coal
12%
2005
38,432
13,502
23,049
39,718
97
114,799
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
12
All forecast information reflects planning
assumptions as of December 2005.
Part 2 – Strategic Overview
Changing Energy Sources
6 Year Trend
Generation by Source and Purchased Pow er
50,000
45,000
40,000
35,000
Nuclear
GWH
30,000
Coal
25,000
Gas/Oil
20,000
Purchases
15,000
10,000
5,000
2000
2001
2002
2003
2004
2005
Year
GWH
Nuclear
Coal
Gas/Oil
Purchases
Hydro
Total
2000
37,059
14,799
43,073
24,188
133
119,252
2001
41,038
14,586
38,873
19,466
154
114,117
2002
40,917
13,743
35,195
27,318
164
117,337
2003
40,628
14,057
22,797
37,687
115
115,284
2004
41,710
15,359
22,619
37,967
151
117,806
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
2005
38,432
13,502
23,049
39,718
97
114,799
13
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Self-supply Options
In order to mitigate the exposure of the Operating Companies to purchase power supply risks and cost
volatility, the System plans to identify and evaluate real executable resource proposals that would allow
for the possibility to construct , if needed and economically justified, new capacity through self-build
options
– Such self-supply options would be executable within a three to five year window.
– These self-build options include participation in new CCGT/cogeneration capacity, unit
repowering and/or upgrades at existing generation sites.
Self-supply options will be compared against market alternatives that provide comparable functionality.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
14
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Portfolio Mix for Long-term Resource Additions
The life-of-unit (LOU) resources, whether PPA or acquisition, that will be added over the ten-year
planning horizon are expected to consist primarily of CCGT and solid fuel resources.
– CCGT resources are anticipated for all OPCOs and each planning region to address load-following
needs.
– Several OPCOs will require additional CCGT or solid fuel LOU resources to address long-term
base load supply needs.
– Near term LOU resources are expected to be provided primarily from resources that are already
operational or nearly complete
– The System will develop self-supply projects to provide “options” that could be implemented
within normal construction periods, if necessary, to limit exposure to power purchases or address
potential long-term reliability issues within particular locations such as Amite South or WOTAB.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
15
All forecast information reflects planning
assumptions as of December 2005.
Part 2 – Strategic Overview
Overview of Major Resource Additions
Acquire or build a minimum of 24 additional CCGT/CT plants to
provide “core” load following
capability
– System has daily load swings of 5000-9000 MW; a minimum of 2000-3000 MW CCGTs needed for
operational flexibility and to limit exposure to purchase power prices
– Need to replace current 35+ year old conventional gas units currently providing this role
– Need to provide each OPCO with at least 1 long-term CCGT in long-term portfolio
– New capacity to be located primarily in Southern portion of the System (Amite South, WOTAB)
– Likely to include some self-supply projects in transmission critical regions (Western WOTAB, Amite
South) to reduce production costs associated with minimum run levels for units whose commitment is
required for RMR and load following
Base Load
Build or acquire a minimum of
2000 MW of new base load
generation – presumably solid
fuel given current gas price
expectations
–
–
–
–
Self-supply
Create self-supply options that
can be executed if needed
Load Following
Purchased
Power
Needed in both Amite South and WOTAB regions
Multiple projects over 2010 – 2015 period
Need a portfolio of projects diversifying generation technology and fuel type
Diversify carbon based technology to consider eastern coal and coke as alternatives to western coal
and rail transport exposure
– Clean conventional pulverized coal expected to be part of the mix at new large (800 – 1600) MW sites
but will take 5 – 7 years to develop
– Coal and IGCC are longer-term options (2013 – 2015+)
– 300 – 500 MW CFB projects provide earlier COD and opportunity to diversify fuel sources and get
resources in multiple regions maximizing use of early capital
Continue reliance on a diversified purchase
power portfolio consisting of 2000 – 5000
MW of short and longer term purchase power
products.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
16
Part 2 – Strategic Overview
All forecast information reflects planning
assumptions as of December 2005.
Strategy for Stable Fuel Resources
The SSRP seeks to provide each Entergy Operating Company with long-term controllable stable fuel price
capacity resources that should move each Entergy Operating Company toward the objective of having
resources that could provide its base load firm energy requirements from resources with highly
predictable fuel prices. Stable fuel price capacity resources are expected to include solid fuel (i.e. coal or
nuclear) capacity, renewable generation resources, or highly efficient gas-fired generation with fixed
price gas price contracts with a term of at least ten years.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
17
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy System 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for the Entergy System with long-term
controlled resources.
Capacity (MWs)
Load Shape Requirements (MWs)
25,000
25,000
1,439
3,473
3,681
20,000
20,000
5,006
15,000
15,000
3,541
10,469
1,735
10,000
10,000
1,042
5,000
10,328
5,000
7,452
Purchases
0
0%
0
20%
Reserves
Peaking
Intermediate
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
7,452
10,328
(2,877)
80%
100%
HCFLF
1,042
1,735
(693)
Requirements
Intermediate
10,469
3,541
6,928
Peaking Plus Reserve
3,681
8,479
(4,798)
Existing Portfolio
Total
22,644
24,083
(1,439)
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
18
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy Arkansas, Inc. 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for EAI with long-term controlled resources.
6,000
Load Shape Requirements (MWs)
Capacity (MWs)
6,000
504
5,000
5,000
4,000
4,000
800
1,581
1,124
547
3,000
715
3,000
440
2,000
2,000
3,068
1,000
Purchases
0
0%
0
20%
Reserves
Peaking
Intermediate
2,299
1,000
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
3,068
2,299
769
80%
100%
HCFLF
0
440
(440)
Requirements
Intermediate
547
715
(168)
Peaking Plus Reserve
1,124
2,085
(961)
Existing Portfolio
Total
4,739
5,539
(800)
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
19
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy Gulf States, Inc. 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for EGSI with long-term controlled resources.
8,000
Load Shape Requirements (MWs)
Capacity (MWs)
8,000
685
7,000
7,000
6,000
6,000
5,000
5,000
1,091
4,000
4,000
590
3,000
3,000
2,000
2,000
696
1,389
1,972
3,035
3,779
422
1,000
1,000
1,408
Purchases
0
0%
0
20%
Reserves
Peaking
Intermediate
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
1,408
3,779
(2,371)
80%
100%
HCFLF
422
590
(168)
Requirements
Intermediate
3,035
1,091
1,944
Peaking Plus Reserve
1,972
2,073
(101)
Existing Portfolio
Total
6,836
7,532
(696)
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
20
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy Louisiana, LLC 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for ELL with long-term controlled resources.
7,000
Load Shape Requirements (MWs)
Capacity (MWs)
7,000
6,000
6,000
306
441
505
5,000
5,000
1,130
4,000
4,000
3,879
934
3,000
3,000
2,000
391
2,000
141
2,597
1,000
Purchases
0
0%
1,000
0
20%
Reserves
Peaking
Intermediate
1,672
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
1,672
2,597
(924)
80%
100%
HCFLF
141
391
(250)
Requirements
Intermediate
3,879
934
2,945
Peaking Plus Reserve
306
1,635
(1,329)
Existing Portfolio
Total
5,998
5,557
441
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
21
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy Mississippi, Inc. 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for EMI with long-term controlled resources.
5,000
Load Shape Requirements (MWs)
Capacity (MWs)
5,000
4,000
4,000
79
214
338
3,000
3,000
1,152
2,253
2,000
2,000
619
332
1,000
480
1,000
1,279
852
Purchases
0
0%
0
20%
Reserves
Peaking
Intermediate
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
852
1,279
(427)
80%
100%
HCFLF
480
332
148
Requirements
Intermediate
2,253
619
1,634
Peaking Plus Reserve
214
1,491
(1,277)
Existing Portfolio
Total
3,799
3,720
79
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
22
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Entergy New Orleans, Inc. 2006 Resource Requirements and Capability
The following chart compares 2006 functional requirements for ENO with long-term controlled resources.
1,600
Load Shape Requirements (MWs)
Capacity (MWs)
1,600
1,400
1,400
1,200
1,200
1,000
1,000
800
800
600
600
400
400
65
486
755
71
187
142
105
200
452
200
281
Purchases
0
0%
0
20%
Reserves
Peaking
Intermediate
Resources (MW)
Requirement (MW)
Excess / (Deficit) (MW)
40%
60%
Base Load
452
281
171
80%
100%
HCFLF
0
105
(105)
Requirements
Intermediate
755
142
613
Peaking Plus Reserve
65
258
(193)
Existing Portfolio
Total
1,272
786
486
High CF LF
Base
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
23
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Gas Correlation
Gas Correlation in terms of Capacity
2005 Supply Mix (% of total energy)
Coal
10%
Hydro
0%
Purchases
35%
Gas/Oil
20%
Hydro
3%
Nuclear
33%
Nuclear
22%
Coal
12%
Gas & Oil
65%
*Capacity based in 2005 Summer Ratings
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
24
All forecast information reflects planning
assumptions as of December 2005.
Part 3 – Current Portfolio
Age of Fleet
Age & Efficiency of ETR Gas / Oil Generation
Gas & Oil Units (MW) By Heat Rate (Btu/kWh) (IHR)
11,000-12,000
9%
>12,000
7%
Gas & Oil Units (MW) Completing Years of Service
9,000-10,000
45%
24-30
15%
10,000-11,000
39%
Gas & Oil Units (MW) By Heat Rate (Btu/kWh) (Billing)
>35
46%
10,000-11,000
31%
>12,000
36%
30-35
39%
11,000-12,000
33%
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
25
All forecast information reflects planning
assumptions as of December 2005.
Part 4 – Load Forecast
Annual Peak Load Forecast
The peak load forecast establishes system reliability requirements.
25,000
24,000
23,000
MW
2006 Business Plan Annual and Firm Peaks (MW)
Forecast Year
Annual Peak
Firm Peak
2006
21,103
20,610
2007
21,478
21,007
2008
21,921
21,438
2009
22,197
21,721
2010
22,661
22,174
2011
22,902
22,431
2012
23,373
22,895
2013
23,894
23,405
2014
24,360
23,868
2015
24,643
24,167
Annual Peaks
22,000
21,000
Firm Peaks
20,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Year
Post Katrina
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
26
Part 5 – Retirement Strategy
All forecast information reflects planning
assumptions as of December 2005.
Retirement Strategy
The operating companies have evaluated and continue to evaluate potential unit retirements on an ongoing basis. The decision whether to retire an existing unit is an economic one that requires comparison
of the forward cost of the existing unit with the forward cost of alternatives.
Many of the System’s older gas and oil-fired units run at low capacity factors. At the same time these
units require relatively low forward spending to keep available. Consequently, these units serve the
peaking / reserve role in an economic manner. They provide economic sources of capacity.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
27
Part 6 – Overview of Plan 2006 - 2015
All forecast information reflects planning
assumptions as of December 2005.
Overview of Plan
 Plan identifies preliminary expectations regarding timing and location (planning region) for new long-
term resources, and expected participation in each resource (to be finalized by the Operating
Committee at the time commitment to resource is made).
 Amounts and timing reflect the Entergy System needs.
 Preliminary resource participation based upon consideration of Operating Company supply
requirements to meet load shape and expected business risks and conditions.
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
28
All forecast information reflects planning
assumptions as of December 2005.
Part 6 – Overview of Plan 2006 - 2015
Summary of Plan Resources
2006
DEMAND & OWNED RESOURCES
Total Reliability Needs
Controlled Resources
Nuclear
Coal
Gas/Oil
Hydro
Total Provision for Resources
Total Expected Procurement
SUPPLY PLAN
Long-Term Resources
Definitive Acquisitions
Definitive PPAs
Planned Long-Term Additions
Load Following
Solid Fuel
TOTAL LONG-TERM
Limited -Term Resources
Definitive Limited-Term Resources
Load Following
Peaking
Annual Block / Call Options
Planned Limited-Term Resources
Load Following
Peaking
Annual Block / Call Options
2007
2008
2009
2010
2011
2012
2013
2014
2015
24,476
24,956
25,472
25,917
26,449
26,760
27,313
27,919
28,466
28,820
4,561
2,228
13,729
229
20,747
4,526
2,219
13,917
229
20,891
4,526
2,219
13,917
229
20,890
4,449
2,188
13,943
229
20,809
4,449
2,188
13,943
229
20,809
4,449
2,188
13,398
229
20,264
4,449
2,188
13,398
229
20,264
4,449
2,188
13,398
229
20,264
4,449
2,188
13,398
229
20,264
4,449
2,188
13,398
229
20,264
3,729
4,065
4,581
5,108
5,641
6,496
7,050
7,656
8,202
8,557
1,198
613
1,198
613
1,198
613
1,198
613
1,198
633
1,198
633
1,198
633
1,198
633
1,198
633
1,198
633
0
156
480
200
480
200
830
308
830
308
1,180
824
1,660
1,324
2,140
1,324
2,620
1,324
2,620
1,324
1,967
2,491
2,491
2,949
2,969
3,835
4,815
5,295
5,775
5,775
1,209
460
50
479
210
100
300
210
100
0
0
100
0
0
100
0
0
100
0
0
100
0
0
100
0
0
100
0
0
100
480
0
700
0
0
1,000
50
0
1,000
450
500
1,000
950
500
1,000
950
500
1,000
550
500
1,000
650
500
1,000
700
500
1,000
1,100
500
1,000
TOTAL LIMITED-TERM
2,899
1,789
1,660
2,050
2,550
2,550
2,150
2,250
2,300
2,700
TOTAL RESOURCES
4,866
4,280
4,151
4,999
5,519
6,385
6,965
7,545
8,075
8,475
The statements contained in this Appendix are made subject to the Reservation of Rights set forth in the RFP and subject to the terms and
acknowledgements set forth in the Proposal Submission Agreement.
2006 LONG-TERM RFP - April 17, 2006
29