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Schedule Experimental Schedule Experimental Energy Reduction Energy Reduction

(EER)(EER)

updated 2005updated 2005

Schedule Experimental Schedule Experimental Energy Reduction Energy Reduction

(EER)(EER)

updated 2005updated 2005

Note: This program is available to qualified participants within the EntergyArkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

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The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):What Is The EER Program, and Why Is Entergy Pursuing This?What Is The EER Program, and Why Is Entergy Pursuing This? • The EER Program is designed to enable the market mechanics necessary to permit a broader range of customers to participate in a curtailment program.

•The EER Program provides an economic incentive to qualified customers to release Entergy from its obligation to supply during periods of highly volatile market prices, or when supply is severely constrained (< 15 days).

•EER offers another layer of protection for Entergy’s customers against the risks of exposure to higher fuel costs.

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85

Highest to Lowest Summer Weekday

Day AheadEnergy ($/MWH)

This chart illustrates the escalation in price for“day ahead” on peak purchased power (6:00 AM –10:00 PM) during the summer of 1999.

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc.,and Entergy Louisiana, Inc. jurisdictions ONLY

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The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):Program FeaturesProgram Features

• The program hours are the 4 hour "super peak” in summer and winter• 2PM - 6 PM CDT May – September•5 PM – 9 PM prevailing time January – April & October – December

• The Customer must participate all 4 hours and at the same pledged demand during each hour (minimum pledge is 150 kW). • Entergy’s posted price will be the same for all 4 hours. • Market Replacement Charges (penalties at a rate of 2 X posted prices) apply for each kW that is 90% below pledged demand, measured during each hourly interval.

• Entergy provides the opportunity for a waiver from Market Replacement Charges, through a “Relief From Operational Failure” provision (2 waivers per program period). The waiver applies to the entire four hour period, and if exercised the customer also forgoes the credit.

• There are Maximum Energy Reduction Payments of 130% of pledged demand. The customer receives no further credit after surpassing 130% of their pledged energy reduction, also measured during each hourly interval.

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA) Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

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The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):How the EER Program OperatesHow the EER Program Operates

• Entergy implements EER by posting energy prices on a web page by 8:00 AM, day-ahead of the proposed curtailment. The customer is notified to review the offer via email, phone call, or fax.

• The customer elects participation by pledging their demand reduction for all four hours using the web interface, and must make the commitment by 11:00 AM day-ahead.

• Entergy provides confirmation no later than 10:00 AM, day-of.

• The energy reduction is measured by comparing the previous normal business day interval metering data within the program hours with the day-of interval metering data for those same hours (2:00 PM - 6:00 PM or 5:00 PM – 9:00 PM).

• Entergy will calculate the energy reduction credit / debit and will post the net result on the customer’s bill, usually within the next available billing cycle.

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA)Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

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EER Program Example Illustration

Assumption: Customer Pledges 500 kW Reduction

VariablesPledged or Minimum Hourly Maximum Hourly

EMO posted price Curtailable Demand Energy Reduction Energy Reduction

$0.50 500 90% 130%

Results:hour 1 hour 2 hour 3 hour 4

Prior Normal Business Day hourly kW 1200 1300 1250 1275Day Of hourly kW 850 750 750 550Net Hourly Energy Reduction 350 550 500 725Minimum Energy Reduction (90% of Curtailable Demand) 450 450 450 450Maximum Energy Payment (130% of Curtailable Demand) 650 650 650 650

Calculation: Market Replacement Net Credit Calculation Credit Amounts Penalty Calculations Charge Results

*hour 1 350 kW X $.50 $175.00 100 kW X (2 X $.50) $100.00 $75.00hour 2 550 kW X $.50 $275.00 none $0 $275.00hour 3 500 kW X $.50 $250.00 none $0 $250.00

**hour 4 650 kW X $.50 $325.00 no credit > 130% $0 $325.00

Total Credit $925.00

* Customer fails to meet the minimum hourly energy reduction of 450 kW (90% of Pledge) by 100 kW. Incurs a penalty.** Customer exceeds the maximum hourly energy payment (130% of Pledge or 650 kW) by 75 kW, receives credit only for maximum allowable.

The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):Example - Market Replacement Charges and Maximum Payment ProvisionsExample - Market Replacement Charges and Maximum Payment Provisions

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA)Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

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0

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800

1 2 3 4Program Hour

En

erg

y kW

Net Hourly Energy Reduction

Minimum Energy Reduction(90% of Curtailable Demand)

Maximum Energy Payment(130% of CurtailableDemand)

Example: Customer Pledges 500 kW Hourly Energy Reduction

Customer Incurs penalty based on 100 kW shortfall

Customer’s maximum paymentis 130% of pledged demand,forgoes 75 kW

The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):Example - Market Replacement Charges and Maximum Payment ProvisionsExample - Market Replacement Charges and Maximum Payment Provisions

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA)Inc., and Entergy Louisiana, Inc. jurisdictions ONLY

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• Customers wishing to participate must be willing to execute an Enabling Agreement with Entergy.

• Customers must have interval metering at their site, or be willing to pay to have interval metering installed.

• Customers will be asked to participate in a “fire drill” to determine the level of operational flexibility as needed to reduce electric loads by a minimum of 150 kW during all participating hours prior to an actual curtailment.

• Participating accounts must be firm (i.e., interruptible load is not eligible to participate in EER)

• The customer must have internet access, and be willing to pay any and all associated fees for this service.

• If back-up generation is to be used, the customer must comply with Entergy distribution standards for wiring configuration.

The Experimental Energy Reduction Program (EER):The Experimental Energy Reduction Program (EER):Minimum Criteria To ParticipateMinimum Criteria To Participate

Note: This program is available to qualified participants within the Entergy Arkansas, Inc., Entergy Gulf States (LA)Inc., and Entergy Louisiana, Inc. jurisdictions ONLY