Aligning CSR with Corporate Business Objectives

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• Aligning CSR with Corporate Business Objectives
• Patty Riddlebarger
• Entergy Corporation

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Who is Entergy?

• Electric utility and power generation company
• Headquartered in New Orleans, LA
• 2.7 million customers in AR, LA, TX and MS
• Wholesale nuclear power generation in NY, MASS,
  VT
• and MI.

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Who Are Our Customers?

• 20 30 of our customers live at or below the
  poverty level
• 40 of children in
• New Orleans live in
• poverty
• We serve 3 of 10 of
• nations counties with
• highest child poverty
• rates

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Who Are Our Customers?

• MS ranks last in household income
• LA ranks 49th
• AR ranks 47th
• TX is 42th

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• Corporate Social Responsibility
• Our Scope
• Corporate Giving
• Entergy Charitable Foundation
• Volunteerism
• Low Income Initiatives
• Customer Assistance Fund
• Low Income Customer Advocacy
• Public Policy Advocacy

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• Our Goals
• To serve the communities where Entergy operates
• To advocate internally and externally on behalf
  of low income customers
• Advance corporate and business unit objectives
  through development and implementation of low
  income and charitable giving strategies that
  support business strategies

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Contributions

• In 2007, Entergy and the Entergy Charitable
  Foundation funded almost 3,000 grant requests
  totaling more than 14.5 million in cash
  contributions

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Entergy Charitable Foundation

• Founded in 2000
• Focused on helping individuals and families break
  the bonds of poverty
• Education, literacy, job training, housing, asset
  building
• Awarded grants totaling more than 2 million in
  2007

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What should be so simple?

• What is the most pressing need in our
• communities?
• If Entergy could do one thing to make a
  difference in our communities what would it be?

Cancer
Hunger
Education
Unemployment
Substance Abuse
Poverty
healthcare
Homelessness
Youth Programs
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Social Responsibility Entergys Approach

• Developed a strategic approach to corporate
  giving and the charitable foundation
• Created Becoming the Best, an initiative to
  make Entergy a recognized environmental leader in
  the business community
• Created a Low Income Initiative, centered around
  our most important customers

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Step OneCommitment from the Top
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The Most Important Customer Wayne LeonardCEO
Entergy Corporation
Sept./October 2002
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Entergys Role

• Since 1999 Entergy has committed 40 million in
  the fight against poverty
• Low Income Initiatives
• Low Income Champs
• Low Income Summits
• Entergy Charitable Foundation
• Public policy advocacy
• Fundraising

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It was not always this way

• Entergy indifferent
• Low Income customers were seen as burden
• Bad credit and collection and shut-off policies
• Insensitive (if not harsh) rate design
  methodologies
• Sat in silence as issues were debated
• Pointed to regulators or elected officials as the
  reasons nothing was accomplished

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Step 2Employee Engagement

• Overcoming obstacles and achieving buy-in

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Why low income?

• Its the right thing to do
• It makes good business sense
• More than 20 percent of our customers live in
  poverty
• They represent more than 631 million in revenues
  annually

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Low Income Customer Profile

• Loyal, hard working and responsible
• Pay their bills on time (particularly elderly)
• Rarely complain
• High satisfaction scores

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Low Income Customer Profile

• Energy costs can consume up to 40 percent of
  their income

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Poverty Costs Per Household 20,000 annually
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It can be a matter of life death

• The Center for Disease Control says that from
  1979 to 1999, excessive heat exposure caused
  8,015 deaths in the United States
• More people die every year from heat-related
  illnesses than from cold

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Employee Engagement

• Low income goals included in annual performance
  review for company presidents
• Low income champs for each state
• Volunteerism efforts in 2007more than 3,000
  homes weatherized 5,000 weatherization kits and
  25,000 CFLs distributed

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Low Income Summits

• Created in 1999
• Forum for low income advocates to discuss common
  problems, solutions
• Help us know how to best help low income
  customers
• More than 1,000 advocates attend annual summits

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Step 3 Program Design
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What are our Low Income Strategies?

• Increase the flow of assistance funds from all
  sources
• Move low income customers to economic
  self-sufficiency
• Provide customers with tools to help manage their
  bills

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Increasing the flow of assistance funds from all
sources
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Lobbying for LIHEAP
Low Income Advocates March on the Hill Washington
Action LIHEAP Day 2006
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Lobbying for LIHEAP yields big results

• 88,900 customers received assistance
• 18.5 million in revenues generated

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The Power to CARE Fund
CAF Funds Raised 2003 - 2007
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Helping customers achieve economic
self-sufficiency
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Entergy Charitable Foundation

• Founded in 2000
• Focused on helping individuals and families break
  the bonds of poverty
• Education, literacy, job training, housing, asset
  building
• Award grants totaling more than 2 - 3 million
  annually

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Entergy/IRS Partnership

• Energy discovered that many people in our area
  didnt know about or understand EITC
• The purpose of Entergy's effort is simple Make
  sure
• low-income customers know
• About the EITC program,
• Where to go for more information, and
• How they find out if they quality
• The goal is to get as many qualified people to
  apply for the program as possible

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Outreach Implementation and Results

• Placed a message on Entergys Interactive Voice
  Recording (IVR)
• Added a link to the IRS Web site from entergy.com
• Low-income champions sent e-mail blasts to
  low-income advocates and faith-based contacts
• Provided posters and brochures at our customer
  service centers for low-income advocates and
  customers
• Contributed grants for media support
• Trained phone center operators to ask if callers
  qualified

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Outreach Implementation and Results

• Distributed 2.3 millionbill inserts
• Provided free IRS EITC Kits to casemanagers,
  agenciesand volunteers
• Stories in AdvocatePower newsletter

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Value of EITC efforts

• 2007 Refunds in states served by Entergy
• 7 billion this is a 17 increase over 2002,
  when Entergy first became involved in promoting
  EITC
• 60 of EITC recipients report using part of their
  refunds to pay utility bills

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Mid South IDA Initiative

• Partnership with Foundation for Mid South
• 1.6 million investment
• IDA programs created in 66 communities served by
  Entergy
• More than 19,000 individuals directly impacted

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Family IDA Savings Goals
17
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ROI for Entergy

• Prepared workforce
• Increased disposable income
• Economic development
• Awards recognition
• Corporate image
• Reduced bill
  delinquency

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Mid South IDA Initiative Multiplier Effect
1.6 million
69 million

• Private Foundation Sources
• Federal Sources
• State Sources
• For-Profit Sources
• Ripple Effect

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Early Childhood Education

• For every 1 invested in high quality early
  childhood education, society reaps 9 in
  benefits.
• Entergy funded a series of studies
• The Economics of Education
• Miles to go Arkansas
• Miles to go Louisiana
• Miles to go Mississippi
• Studies are being used as catalysts to unite the
  business community in support of early childhood
  education

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Early Childhood Education

• Action Entergy led charge in AR for an increase
  of 50 million in state funding pre-K for low
  income families.
• Result AR has emerged as a new national leader
  in pre-K. Projected economic impact 15 billion
  by 2035

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Early Childhood Education

• Action Entergy collaborated with the Southern
  Education Foundation, Success by Six and other
  organizations to push for increased funding for
  Pre-K
• Result LA legislature approved universal Pre-K
  in 2008

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Affordable Housing

• Habitat for Humanity homes
• In LA, MS, NY and TX
• More than 300 employees involved 10,000 hours
• Helped 22 families achieve the dream of
  homeownership
• Awarded more than 600,000 Habitat affiliates
  nationwide

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Provide customers with tools to help them manage
their bills
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Traditional Outreach Tools

• Literature requests fulfilled
• Homes weatherized
• Weatherization kits distributed
• CFLs distributed
• Beat the Heat fan and air conditioning unit
  giveaways
• Weatherization/energy efficiency workshops

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LIHEAP Getting the Word Out

• Pilot launched to notify eligible customers
  through automated phone calls

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LIHEAP Getting the Word Out

• Results
• Revenues from LIHEAP in pilot area have tripled
• Uncollectibles are reduced
• Costs for ALL customers lowered
• Shareholder value is maximized

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Credit Power

• Easy Start Package -- Removes barriers for low
  income customers who are establishing utility
  service for the first time
• Independence Package -- Removes barriers for low
  income first time homeowners/welfare to work
• Reconnect Package -- Helps low income customers
  recover from prior debts while maintaining dignity

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Credit Power

• Safety Net Package provides assistance for low
  income customers experiencing crisis that
  prevents them from making utility payment
• Senior Service Package -- ensures that low income
  seniors do not sacrifice quality of life

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Lets talk turkey
Photo courtesy John Ford National Wild Turkey
Federation
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Win-Win-Win Solutions

• Entergy right of ways cleared at no expense to
  ratepayers
• Increased service reliability
• Increased customer satisfaction
• Natural habitats restored
• Costs are reduced
• Shareholder value maximized

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Our Environmental Commitment

• Entergy pledges to lead our industry in
  environmental stewardship
• Entergy is committed to promoting environmentally
  cleaner and more efficient generation,
  transmission, distribution and use of energy

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Our Environmental Commitment

• Voluntary commitment to contain CO2 emissions at
  2000 levels through 2010
• Pledged 25 million to fund CO2 reduction
  projects
• Partner with the Environmental Defense Fund
• Patrick Moore, co-founder of Greenpeace

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Our Environmental Commitment

• Nuclear power
• Wind power
• Fuel cell research
• Sustainable Forestry Plan
• Carbon Credits
• Public Policy Advocacy

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Just Do It
Entergy Teams Up With Nike for Schools and the
Environment
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It aint easy being green!
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ROI SHOW ME THE MONEY

• Revenues generated 18.5 million
• Customer bills paid/disconnects avoided 88,900
• ECF/Corporate grants 14.5 million
• Volunteer hours 30,000 valued at more than
  500,000
• 3,232 homes weatherized
• 25,000 CFLs distributed
• 5,000 weatherization kits distributed

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Increased Brand Equity

• 2008 CRO Magazine 100 Best Corporate Citizens
• Dow Jones Sustainability Index 2002 2007
• 2007 U.S. Chamber of Commerce Community Service
  Award
• 2007 Storebrand SRI Best in Class Social
  Environmental Performance

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Increased Brand Equity

• Fortune 500 Most Admired Companies
• Community Action Partnership Corporate Champion
  Award
• Diversity Best Practices Award
• PR Newswire Corporate Social Responsibility Award
• National Fuel Funds Network Award

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License to Operate Priceless
9,000 Advocate Partners
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License to Operate Priceless
Unanimous Settlement Agreements
Improved Regulatory Climate
Reduced Costs
Improved Credit Ratings
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License to Operate Priceless

• 9,000 Advocate Partners
• Win/Win Unanimous settlements
• Improved regulatory climate
• Improved credit ratings
• Community Goodwill/Elected Official Support

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The lasting legacy of Entergy will not be
measured in dollars, but by the number of lives
that we have positively affected.

• J. Wayne Leonard