Entergy Corporation · NYSE:ETR
Entergy — Technical Presentation (September 2006)
9 slides from Entergy's technical presentation, Sep 11, 2006
Slide 1: Evaluation Independent Monitoring
Evaluation Independent Monitoring Presented at: LPSC Staff’s Technical Conference and ESI’s Bidders’ Conference for the Fall 2006 Limited-Term RFP September 11, 2006 Marriott Hotel Intercontinental Airport Houston, Texas
Slide 2: The Role of Evaluation IM
The Role of Evaluation IM • Our monitoring function requires us to be active in four main areas 1. RFP Development – Review and comment on Entergy’s proposal evaluation methods, analysis tools and processes, data inputs and assumptions, and price and non-price evaluation criteria. – Review does not
Slide 3: The Role of Evaluation IM
The Role of Evaluation IM 3. Proposal Selection The Evaluation IM will review any preliminary and final proposal rankings, portfolio selections and proposal awards. 4. Due Diligence The Evaluation IM shall have access to any documentation, processes, and other information necessary to ensure tha
Slide 4: Current Evaluation Issues
Current Evaluation Issues • In the process of monitoring, issues arise that require our attention. • Some of these issues have also been raised in the collaborative. • This presentation addresses five issues that are important at this stage of the RFP development: Contract length Evaluation of m
Slide 5: Current Evaluation Issues: Contract length
Current Evaluation Issues • Contract length Entergy has limited the contract length to 5 years. Entergy may extend selected proposals if capacity displacement is economic for the extended term. We believe Entergy’s approach is reasonable. – Given the flexibility in product types, the evaluatio
Slide 6: Current Evaluation Issues: Evaluation of proposals
Current Evaluation Issues • Evaluation of proposals All proposals will be ranked individually and by product category and term. An initial portfolio will be created based on economics, mixing product categories and contract term. Portfolio will be modified incrementally to help ensure an optim
Slide 7: Current Evaluation Issues: Economy energy
Current Evaluation Issues • Economy energy Economy energy market based on estimated supply curves for three sources of supply: – TVA – Southern Company – Internal to Entergy Supply curves based on simulation of regional dispatch and inter-regional transfers using MIDAS. – MIDAS provides hourly s
Slide 8: Current Evaluation Issues: Transmission analysis
Current Evaluation Issues • Transmission analysis is conducted to evaluate transmission access and to identify potential benefits (RMR and counterflow). • Transmission access is determined by identifying transmission constraints that may exist for a proposal; These constraints may be mitigated by:
Slide 9: Current Evaluation Issues: Capacity Displacement issue
Current Evaluation Issues • Capacity Displacement issue After ESI fills incremental reliability needs (Appr. 800 MW), remaining proposals (with terms of at least three years) will be tested to see if their economics are such that they could displace an existing Entergy plant. The selected plants