An Important Message for Customers of Entergy New Orleans, Inc.

January 24, 2008

In case you have not heard the good news, Entergy New Orleans, in conjunction with the New Orleans City Council, is voluntarily giving back $13.1 million to our customers.

While this may not be the norm for most utilities these days, Entergy New Orleans is able to give back this year because people are coming home at a faster pace than predicted.

You may recall that in response to repopulation forecasts made by national experts as well as our own analysts in 2006, our company took a conservative outlook because of the many uncertainties facing New Orleans at that time. As we look ahead, there are signs of progress. City leaders are addressing key needs in a deliberate and dedicated manner. State and federal leaders are investing significantly in our economy, the levees, and coastal restoration efforts. The LSU medical complex, the Veterans Administration and other hospitals are rebuilding. Schools are opening. Tourism is on the rise.

The city’s steady growth has positioned Entergy New Orleans to give back $13.1 million in 2008.

How are we going to accomplish this?

We’ll start by returning to our customers $10.6 million through lower electric rateable with January bills, a line item will appear called the Recovery Credit showing the 6.1 percent rate reduction on your electric bill .

What does the credit mean for customers?

More money in every family’s pocket and as much as $10,000 for the city’s large employers.

In addition, the company set aside approximately $2.5 million for future customer benefits, the details of which we will announce in the next few days.

Lower electric rates. New customer benefits. All in collaboration with the New Orleans City Council. That’s Entergy New Orleans helping our customers and our economy.

But there is more. We’re listening to you. And in the weeks and months to come, Entergy New Orleans will announce new initiatives that will help the city and assist our customers.

So, why are we working so hard to help our fellow citizens and make things better?

Sincerely,
Rod West
President and CEO
Entergy New Orleans, Inc.