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Entergy’s Utility Companies:

• Entergy Arkansas, Inc. , . • Entergy Gulf States Louisiana, L.L.C.

• Entergy Louisiana, L.L.C. • Entergy Mississippi, Inc. • Entergy New Orleans, Inc. • Entergy Texas Inc.

Regulated Service Territory

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Entergy’s Utility Companies:

• Entergy Arkansas, Inc. , . • Entergy Gulf States Louisiana, L.L.C.

• Entergy Louisiana, L.L.C. • Entergy Mississippi, Inc. • Entergy New Orleans, Inc. • Entergy Texas Inc.

Regulated Service Territory

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On-Line Rewards Residential Lighting and Appliances Res & Small Comm Cooling Solutions Home Energy Solutions Energy Efficiency Arkansas AR Weatherization Benchmarking ENERGY STAR Homes Direct Load Control Mobile Homes Multifamily Direct Install C&I Prescriptive City Smart C&I Custom Agricultural Irrigation Load Control Small Commercial Direct Install Agricultural Energy Solutions

EAI PROGRAMS

ETI PROGRAMS Residential Standard Offer Premium Homes Hard to Reach Standard Offer Commercial Solutions Load management Texas Score/ City Smart

ENO PROGRAMS Home Performance with Energy Star Energy Star Air Conditioning High Performance A/C Tune Up Energy Smart New Homes CFL Direct Install Income Qualified Solar Water Heater Small Commercial Solutions Large Commercial Solutions

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Entergy’s  energy  efficiency  program  spending  has  more  than  tripled  since  2011  and  savings  have  reached  nearly  250,000  MWh  annually  driven  primarily  by  program  expansion  in  Arkansas.      

 $-­‐    

 $20    

 $40    

 $60    

 $80    

 $100    

 $  M

illions  

Annual  Program  Spending  

EMI  

ELL/EGS  

ETI  

EAI  

ENO  

 -­‐        

 50,000    

 100,000    

 150,000    

 200,000    

 250,000    

 300,000    

 MWh  

Annual  Program  Savings  

ETI  

EAI  

ENO  

5 5 5 Source:  Lawrence  Berkeley  NaEonal  Laboratory,  The  Future  of  U,lity  Funded  Energy  Efficiency  Programs  in  the  U.S.,  January  2013  

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Based on the U.S. Energy Information Agency new capacity forecasts, industry investment of over $150 billion by 2020 is estimated in new generation capacity

largely because of the aging fleet and early retirements of uneconomic coal plants due to environmental regulations.1

The Brattle Group forecasts new transmission investment of over $100 billion through 2020 to maintain grid reliability and integrate new renewable energy

sources, often associated with renewable portfolio standards.2

Edison Electric Institute (EEI) forecasts that $1.8 trillion will be spent for reliability over the next 20 years.

The U.S. Environmental Protection Agency estimates suggest that total incremental compliance cost of nearly $55 billion for the six years from 2015

through 2020 to comply with EPA regulations, namely MATS.3

Sources: Deloitte Center for Energy Solutions, The Math Does Not Lie: Factoring the Future of the U.S. Electric Power Industry, Nov 2012 Edison Electric Institute

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-2

0

2

4

6

8

10

12

14

50 60 70 80 90 00 10E 20E 30E 40E

U.S. Electric Demand Three Year Average Growth Rates 1950 – 2040E; %

Source: Department of Energy, Energy Information Agency Annual Energy Outlook 2013, Reference Case

Period Average 50's 9.9% 60's 7.4% 70's 4.7% 80's 2.9% 90's 2.4% 00's 0.7%

10’s (p) 1.0% 20’s (p) 0.8% 30’s (p) 0.9%

Industry Industry Trend

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•  Energy efficiency can be considered a utility resource where it can: •  Cost effectively avoid or delay investment in

generation/transmission/distribution

•  Be considered broadly in terms of total utility capital needs and slowing sales

•  At a minimum, utilities must be able to recover program costs and fixed costs necessary to provide safe, reliable service.

•  Allowing a return on energy efficiency investment provides the proper incentive.

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