March 8, 2007 Robert D. Sloan Executive Vice President & General Counsel Entergy Corporation Hurricane Katrina: The Entergy Experience

August 26: Forecast for Katrina’s 2 nd 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. LouisianaMississippiAlabama Tornado activity within the storm 115 miles 126 miles 196 miles Sustained Winds mph mph CAT 3CAT 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 Orleans and 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 Mississippi Due to Hurricane Katrina of Out of 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 AreaTotal Outages Generation Units Offline18 Transmission Lines Out182 Transmission Substations Out263 Distribution Poles Destroyed17,400 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 9 th 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) 6,000 East Orleans Network 64,000 Orleans Network 23,000 Chalmette Network 30,000 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 Costs Are 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. Estimated Restoration Costs Due to Hurricane Katrina $ Million Total Expected Cost Total Net Plant ,700 1,600 % of Plant54% - 68%9% - 10%5% - 6% % of Equity149% - 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