We have summarized where we are after 90 years. In only ten more years Entergy will be

Transcription

1 We have summarized where we are after 90 years. In only ten more years Entergy will be celebrating a century of service to the public. When that day comes, we want to be able to say that we have ample supplies of power, improved reliability, more community partnerships and T HE p ower TO LIGHT UP THE WORLD better service to all of our customers. We pledge ourselves to these goals. AND build A BETTER ONE E N T E R G Y W W W. E N T E R G Y. C O M L OW-INCOME C USTOMER A SSISTANCE P R OGRESS R EPORT A 90 YEAR C OMMITMENT TO S ERVING P EOPLE

2 E NTERGY, S COMMITMENTS T HE POWER TO LIGHT UP THE WORLD and B UILD A BETTER ONE. Commitments Made The first low-income summit was held in New Orleans in November Since that time, summits have been held in Jackson in 2000, Little Rock in 2001, Beaumont in 2002 and Baton Rouge in During these meetings goals were set, progress was reported and commitments made and renewed. Here is a summary of those commitments over the last four years. Commitments Develop and implement a business plan with advocates to address energy concerns of low-income customers that include improved credit policies, conservation and efficiency projects, increased state and federal programs and contributions practices that are accessible and accountable Communicate effectively with customers and the public on the larger issues of poverty, using the best research and information available, to gain greater support for programs and to change apathy into action Percentage of People in Poverty in Entergy s Service Area Progress Made Committed $20 million in resources; revised credit policies; improved weatherdisconnect policy; instituted late fee waivers; promoted Pick-a-Date, Levelized Billing; increased telephone outreach to maintain service; revised contributions policies to make more grantees eligible Funded 10 customer research projects; distributed 1.2 million brochures and 25 million bill inserts on low-income issues; created 30-minute television program on low cost conservation tips; conducted hundreds of conservation workshops and published hundreds of news articles about programs; promoted and funded asset-building initiatives and EITCs. BD Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% On the Cover: Top: Harvey Couch stands at the site of a new dam prior to its dedication in Bottom: T HE power TO LIGHT UP THE WORLD AND build A BETTER ONE. L OW-INCOME C USTOMER A SSISTANCE P ROGRESS R EPORT A 90 YEAR C OMMITMENT TO S ERVING P EOPLE William Lee, an Entergy employee, works to construct a Habitat for Humanity home in Texas. Throughout this book, historical photos from Entergy s past are used to illustrate 90 years of service. References to Company history include information from Stephen Wilson s book, Harvey Couch: An Entrepreneur Brings Electricity to Arkansas, as well as the corporate communications archives. Table of Contents I. Entergy s Commitments Inside Front Cover 1I. Introduction III. - Couch Established Community Service Record Entergy Carries on Today - A New Generation of Advocacy - Community Service Continues in 21 st Century Credit Policies: Proposed Credit Policies Give Options to Low-Income Customers IV. Utility Programs Entergy Arkansas Makes History with Legislation - Entergy Louisiana Programs Promote Homeownership, Education, Independence - Entergy Mississippi Continues Outreach, Sponsorship and Training - Entergy New Orleans Enhances Community Service Tradition with New Partnerships, Funding - Entergy Texas Builds Legacy Through Projects, Programs and Paint V. Contributions: Entergy s Employees, Volunteers, Retirees and Customers Join Hands to Alleviate Poverty VI. VII. Communications: Entergy Empowers Customers Through Information, Education Federal Efforts: Entergy Gathers Strength with New Allies to Support Federal Low-Income Initiatives Seek passage of state legislation or regulations to create public benefit funds Increase federal energy assistance programs and funds for our region and the country Lead others to participate in efforts to better serve low-income customers Create partnerships to leverage funds for charitable programs Texas and Arkansas passed legislation; New Orleans has funds set aside awaiting regulatory action; Mississippi and Louisiana attempted legislation and will try again in 2004 Punitive weatherization matching requirements stopped; LIHEAP authorizations increased by $1.4 billion; built alliance to change formula; New Markets Initiative funded; Individual Development Accounts promoted and funded Created EEI low-income taskforce; led CEO campaign for support of the National Fuel Funds Network; established outreach project involving more than 3,000 churches; formed local coalitions to support state legislation; chaired Business LINC chapter Worked with Foundation for the Mid South and the Enterprise Corporation of the Delta to bring additional charitable dollars into the region; funded IDA grants; averaged $5 million annually in awarding low- income grants; increased Customer Assistance Funds by 25%; revamped administrative grants policy VIII. Research: Research Reveals Customers Needs, Desires, Attitudes and Willingness to Give IX. Initiative Leadership - Entergy Utility Advisory Board Representatives Multi-State Advisory Group Entergy Low-Income Champions and Support Staff Build better relationships and improve communication with advocates Added low-income representatives on Advisory Boards; created and maintained MSAG, whose members provide counsel and support for initiatives; hosted hundreds of state and local meetings; participated in national low-income coalitions and sponsored advocates to attend national and regional meetings Incorporate concerns for low-income customers into Entergy vision and values All Entergy business units are now involved in some aspect of the low income initiative; more employee volunteers and senior management support; other company taskforces now consider impact on low-income customers before taking action; internal and external communications drive positive community profiles

3 I NTRODUCTION L OW-INCOME C USTOMER A SSISTANCE Progress Report Couch Established Community Service Record Entergy Carries on Today This year Entergy celebrates its 90 th birthday. Anniversaries are good times to reflect on the past and plot a course for the future. It is a time to reflect on our successes and failures, reaffirm our values, evaluate our goals, adapt our strategies as needed and give thanks for all who have helped us along the way. As the low-income initiative begins its fifth year, we celebrate the work that has been done and the friends and partners who have contributed in meaningful ways. By learning from the past we can focus on what lies ahead and on setting more ambitious goals. The low-income initiative has created an environment that generates energy, and energy is our business. Ninety years ago, Harvey Crowley Couch created Entergy. He was an extraordinary man whose life epitomizes much of what we consider the classic American dream. Rising from humble origins, he went on to build an electric system in the Mid South that raised the living standard of hundreds of thousands of men and women. During our country s darkest economic era, he answered the call of two presidents to serve the public, leading regional and national efforts to help those in need. And even after his death, Couch left behind an enduring legacy: a clear understanding that human concern for the disadvantaged or the economically dislocated does not stop at the boardroom door. While the world has changed a lot in 90 years, these principles have not. Today, we recommit ourselves to improve educational opportunities for all children and to keep and bring jobs into our states. We believe, as Harvey Couch did, that education and economic development are two long-term solutions to the poverty that grips so many of the communities we serve. Early on Couch was introduced to both these ideals. As a teenager in the late 1890s, Couch wanted to drop out of school to work and support his family. One of his schoolteachers, Pat Neff, pulled Couch aside, spent some time talking with him and asked him about the kind of future he wanted. Neff wrote something on the blackboard that day that motivated Couch as it does us today: A quitter never wins and a winner never quits. With a good education, Couch could accomplish anything he wanted. He went on to found several successful businesses, and our company, which he formed in 1913, is one of those successes. And what happened to Neff? He became governor of Texas. Couch faced what seemed to be insurmountable obstacles in the early stages of the company s development. However, he never lost sight of his objective: to provide reliable, affordable service to his customers. This same purpose permeates all we as a company and an initiative do, and it has throughout our 90-year history. Just as we have experienced setbacks and disappointments with our low-income programs, together we also have persevered to accomplish much for the elderly, disabled and low-income customers we serve. Couch did not quit in the face of adversity, nor will we now. In 1926 months of heavy rains created one of the worst natural disasters ever to strike the region. In 1927 the Mississippi River broke through levees in Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri and Tennessee, covering an area of approximately 26,000 square miles with floodwaters. Tributaries then flooded more than 100,000 acres and left more than 100,000 people homeless. The waters finally began to recede by July, but 1.5 million acres of land were still under water. More than 200 people had died, more than 700,000 people were homeless, countless buildings and crops were destroyed, and industries and transportation were paralyzed throughout the region. Couch was named the director of flood relief efforts for the area. Working closely with the Red Cross, Couch faced two disaster-related problems: relieving the citizens flood-related misery and providing power to the area. Earlier, when building his company, Couch had visualized an interconnected system of power in these areas. The system succeeded and stayed online throughout the heavy rains and floods. Couch believed economic development and jobs in rural areas of the Middle South were important to break stereotypes within the community. He attributed the real problems of the South to apathy and was determined to be the champion for the common man. Couch believed that by supporting and believing in the ability of the economically deprived, there would be no limits to what could be accomplished. In the early years of the Great Depression, Couch continued his effort to help the poor get back on their feet after weathering natural and economic disasters. He played a major role in various relief organizations that President Hoover had established to reduce the pain and hopelessness that was gradually swallowing America. During 1930 and 1931, Couch served as chairman of the Arkansas Drought Relief Committee and headed up the Arkansas branch of the President's Unemployment Relief Organization. Couch was admired nationally as a man willing to put aside political partisanship when national emergencies demanded unified action. In December 1931 Hoover proposed the establishment of the Reconstruction Finance Corporation to lend federal funds to distressed railroads, banks and farmers. In January 1932 Congress established the RFC, and the Senate approved the nomination of Couch and six other influential businessmen as directors. Couch supervised the public works section of the RFC, and with his previous experience and knowledge in the fields of transportation, finance and public utilities. Couch was in a position to give the American people real help. Following the election of 1932, Couch continued to serve as a member of the RFC under President Roosevelt, and his wide experience was felt in every part of the country during a period of national recovery. During his stay in Washington, D.C., Couch played a crucial role in and establishing the model for massive and successful federally financed public works programs. Couch also assisted low-income people by keeping energy affordable. The company s service area grew to incorporate Arkansas, Louisiana and Mississippi by 1923, and Southeast Texas in the mid-1990s. Inset: Entergy surveys the aftermath of a hurricane that swept through parts of the Middle South. Left: Crews survey the Remmel Dam site in

4 I NTRODUCTION L OW-INCOME C USTOMER A SSISTANCE Progress Report A New Generation Of Social Advocacy In the late 1990s, Entergy made two decisions that provided a new focus on serving low-income customers. First, the company examined itself, revealing duplication of effort, different approaches to assistance, conflicting programs and ineffective communication with our low-income customers. There was motion but little progress. Entergy s second important decision was the appointment of Wayne Leonard as chief executive officer. Leonard saw the preliminary results of early low-income research and program development and added his personal commitment to improving the lives of poor families across our region. In 1999 Leonard worked with community leaders, consumer advocates, and community service provider agencies to establish Entergy s first Low-Income Customer Assistance Summit. We will no longer take a passive role as minorities or low-income people or any other group that doesn t have a legitimate voice are victimized by the few who are willing to simply out-shout everybody else who disagrees with them, Leonard said at the first Summit. In response, advocates, volunteers and employees have taken up this challenge by giving voice to the voiceless while working to improve their economic and physical well being. The five utility Advisory Board Members as well as the members of the Multi- State Advisory Group continue to advise Entergy and provide support for increasing resources to assist low-income customers throughout the Middle South. In that first year, Entergy promoted job creation in impoverished counties through grants of $5 million to the Enterprise Corporation of the Delta and $250,000 to the Foundation for the Mid South. In 2000 Entergy took a leading role in the utility industry in opposing a proposed requirement that states provide matching funds to gain federal funding for the Weatherization Assistance Program. The company made it a business goal to pass legislation in all of its regulated service areas to create permanently funded low-income energy assistance programs. In response to a request advocates made at the 2000 Summit in Jackson, Entergy appointed low-income advocacy representatives to the advisory boards of each of its five utility service companies. The company also established the Multi- State Advisory Group (MSAG) to build connections with Entergy and advocates for its low-income customers. The creation of the Entergy Charitable Foundation in 2000 was a major milestone for the low-income initiative. This corporate foundation is dedicated to assisting other institutions whose focus is on low-income assistance, economic and community development, education and literacy. Last year the Foundation made contributions of over $10 million to non-profit organizations serving the region. So far this year the Foundation has awarded over $7 million in grants, of which approximately $6 million have been to further low-income goals and initiatives. In 2002 Entergy pledged more than $1 million to the development of Individual Development Accounts (IDAs). IDAs are a powerful tool for low-income customers to use to accrue assets for purchasing a home, improving and weatherizing a home, or earning a college education. Entergy also worked in partnership with the Internal Revenue Service (IRS) to provide English and Spanish language information about ways to qualify for refunds of the federal Earned Income Tax Credit (EITC). According to the Wayne Leonard greets guests at a Watershed event. IRS, the EITC brought more than $5 billion to working poor families in Entergy s service area. More than 20 years ago Entergy companies established Customer Assistance Funds (CAF) in each of the states. These funds are made up of money raised through community and employee efforts; they provide financial aid to elderly and disabled customers in paying their utility bills. Funds contributed by employees and retirees are matched by Entergy s shareholders. Similarly, Entergy has committed to matching employee gifts dollar-for-dollar to the United Way campaign. In 2003 donations reached $4 million from all sources. Community Service Continues in 21st Century In the same spirit that guided Harvey Couch that of public service and faith in people to shape their own destinies if given the tools and opportunity to do so the low-income initiative continues to base its work on the power of people. While a lot has changed in 90 years, our company s principles have remained the same. Just as our founder went to Washington, D.C. to get help for the low-income people of the region, we work in Washington today to rally support for LIHEAP reform and other federal programs to assist those in need. For 90 years we have believed economic development is a solution to poverty, and we continue this tradition through community and economic development programs today. In the pages that follow, you will read about the efforts of our employees, advocates, government officials and service providers who work cooperatively to improve the lives of the economically disadvantaged throughout our region. This report describes programs for low-income and working poor people, a few of our successes and failures and what we hope to learn from them. There are accolades for those who have made contributions to their communities, states and nation. It is from the tradition that winners never quit and quitters never win that Entergy recommits itself to build the world that Harvey Couch envisioned, and that the low-income initiative continues to shape: a world where all people can afford life s basic necessities and work to better their own future. 5

5 C REDIT POLICIES L OW-INCOME C USTOMER A SSISTANCE Progress Report Proposed Credit Policies Give Options to Low-Income Customers Entergy has a new customer credit policy initiative with two goals in mind: to remove financial barriers faced by low-income customers and renew relationships with them. The packages described below will not only help customers who want to establish credit and set up their own utility service, but will assist those who are trying to repair bad credit. They will be implemented beginning next year where state laws and regulations permit. These new packages of credit policies were produced with the guidance of advocates and customers. The Multi-State Advisory Group, a working group of low-income advocates and service providers who advise Entergy on its low-income policies, asked the company to help those who are rehabilitating their credit ratings and making progress toward self-sufficiency. For these new policies to provide the most help, Entergy will provide training and educational materials to the agencies that serve the low-income community. Entergy believes much of the focus should be on energy conservation and low-cost and no-cost ways of saving energy and money. The Easy Start Package customer is then immediately eligible for enhanced credit programs such as Budget Billing, which levelizes the monthly bill, and Pick-a-Date, which enables the customer to choose the day of the month the bill is due. The Independence Package The Independence Package assists customers who are moving from government assistance to self-sufficiency, specifically low-income customers who are first-time or Habitat for Humanity homeowners and welfare-to-work candidates. These new customers will be given deposit waivers regardless of their credit score or payment history, and will be immediately eligible for Budget Billing and Pick-a-Date programs. If a customer has an existing deposit, that deposit will be credited against the Budget Billing account. The Reconnect Package The goal of the Reconnect Package is to give low-income customers who have avoided paying final or written-off debts or who do not have service established in their own names another opportunity to establish credit with Entergy. Some of these customers may have signed up for service under the names of their children or relatives in order to retain or restore electric service while avoiding payment of prior debts to Entergy. Through this program, customers can restore their credit standing and ensure that the credit records of their children or relatives are not adversely affected by the customers actions. When these customers come back into the Entergy system without penalty, their previous debts and current accounts will be updated to reflect their correct identities, and credit files will be updated to remove negative notations on the records of children or other people into whose names the account has been transferred. In addition, prior debts will be rolled into the Budget Billing account and amortized over a 12-month period or longer if necessary. The customers will also be immediately enrolled into the Budget Billing program and are eligible for financial training and budget counseling by community service provider agencies. The Safety Net Package The Safety Net Package targets low-income customers who have experienced an unexpected hospital stay or medical emergency in their household. The package also helps customers who experience the death of their family wage-earner, a fire, flood or other disastrous event. Customers who suffer these terrible events will have their mandatory monthly minimum payment waived for the first 90 days following the event. Entergy will take the 90-day balance and amortize it over the following 12 months and credit any deposits to the customer s Budget Billing account. Customers will then be automatically eligible for the Budget Billing and Pick-a-Date plans. The Senior Service Package For senior citizens, retirement and having to live on a fixed income can be daunting. Entergy wants to ensure that lowincome senior citizens do not sacrifice their quality of life for fear of what their utility bills might be. The Senior Service Package will target those customers whose head of the household is over the age of 65 and who have been determined to be income-eligible by the relevant agency. These customers will be automatically eligible for the Budget Billing and Pick-a-Date programs, and their deposits will be refunded. They will also be permanently exempt from late payment fees as long as they remain income eligible. In addition, Entergy will allow those customers in arrears to catch up by spreading unpaid balances throughout the year if they are enrolled in the Budget Billing program. Keeping Our Customers Connected To assist customers who are having trouble paying their energy bills, Entergy phones and informs them of any imminent disconnection for non-payment. Last year, Entergy s Customer Service Centers and Credit organi- A significant number of low-income customers have lived where the rent they paid included utility services. The Easy Start package allows these customers to establish their own electric service accounts as they move into new housing. Entergy will weigh the customer s credit score to determine if a deposit is needed. If so, Entergy will offer an option to the customer to pay the deposit in four installments beginning with the zation made 2,107,258 courtesy phone calls to customers whose past due bills were subject to disconnection, offering extended payment arrangements and reminders in an effort to avoid non-pay disconnection. Entergy also offered 1,448,434 extended payment first bill, and no advance payment will be arrangements and installment plans to give customers more time required. In addition, if the customer to pay and avoid non-pay disconnection. Of the 7,288,853 reaches 18 months of solid payment history with no arrears or non-pay disconnections, the company will refund the deposit. The delinquencies across the Entergy system in 2002, we were able to limit non-pay disconnects to only 404,573 occurrences. 7 8

6 U TILITY PROGRAMS A r kansas L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Arkansas Makes History with Legislation With the support of Entergy Arkansas and a coalition of advocates, the Arkansas Legislature passed Act 120 of 2003, establishing the Arkansas Weatherization Assistance Fund. Arkansas now joins other states providing supplements to the federal Weatherization Assistance Program. The state program will fund the installation of home weatherization and energy efficiency measures for low-income Arkansans who are eligible for this service under Arkansas Department of Human Services (ADHS) regulations. More than 4,000 homes are currently on the Department s waiting list for weatherization services, although ADHS estimates more than 178,000 Arkansas homes are in need of services and are occupied by qualifying low-income households. With the new dollars from the Weatherization Fund, it is estimated that agencies across Arkansas can increase the number of homes receiving weatherization and energy efficiency services from the current 1,300 a year to 4,000. Entergy Arkansas is one of 30 members of the Coalition for Energy Efficiency, the organization that led the effort to get the bill passed. The weatherization fee is scheduled for implementation in January Individual Development Accounts To help increase assets for the working poor, Entergy committed $1.2 million over a two-year period to the Foundation for the Mid South Individual Development Accounts Initiative. That commitment helped several low-income customers purchase homes, weatherize their homes or start businesses during In Pine Bluff, Entergy helped celebrate local beneficiaries of the IDA initiative, and in one case, a single mother who saved money for 18 months used her savings and the IDA matching funds to purchase Arkansas Weatherization Fund legislative celebration team. February 2003 her first home. In September Entergy sponsored a statewide IDA conference in partnership with the Good Faith Fund from Pine Bluff, which provided information regarding launching an IDA program for Community Action Agencies and community-based organizations. ExplorIT About 60 young low-income Arkansans spent a week at ExplorIT, a weeklong day camp where they gained valuable knowledge of the inner workings of computers and careers in technology. Entergy Arkansas sponsors the camp in partnership with ExplorNet, a nonprofit organization that promotes learning opportunities in computer technology. The money for the camp and related equipment was provided through a grant from the Entergy Charitable Foundation. Entergy sponsored four ExplorIT camps this summer in McGehee, Morrilton, Forrest City and Little Rock. At ExplorIT, sixth, seventh and eighth grade students are able to learn how technology creates career opportunities. The camps include activities involving robotics, electronics and entrepreneurship. SWEEPs Entergy Arkansas sponsored and organized 30 SWEEPs in The SWEEP (Sharing Weatherization Efforts with Elderly People) is a one-day event in which a group of people volunteer to perform weatherization and minor repair work on homes of elderly or handicapped low-income customers. Typically, Entergy employees and representatives of local civic or social organizations make up the teams, and Entergy trains local leaders to organize and execute SWEEPs on their own. In conjunction with SWEEPs, Entergy Arkansas partnered with a dozen hardware and home improvement stores around the state to conduct live demonstrations of simple, inexpensive tasks low-income The Watershed Human and Community Development Agency in Little Rock provides energy-saving measures, food and community services. The agency celebrated its 25th anniversary in October. Entergy Arkansas Low Income Activity 2003 Percentage of People in Poverty in Counties Served by Entergy customers are able to perform to make their homes more energy efficient and their energy bills lower. Entergy sponsors the events Summertime Solutions or Wintertime Solutions, depending on the season and also provides staff to help run them. Stores partnering with Entergy include Plyler Hardware in Glenwood, Whit Davis Lumber in Jacksonville, Fuller & Sons Hardware in Little Rock and Malvern Hardware in Malvern. Outreach Project Deserve Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% - SWEEPS - Conservation Outreach -Piggyback Program -Training Programs Through September Entergy, Arkansas customers, employees and retirees donated $169,599 to Entergy s customer assistance fund, Project Deserve. Administered by the American Red Cross, Project Deserve provides financial assistance to qualified lowincome, disabled or elderly Entergy customers who need help paying their electric bills. Entergy officials continue to work with low-income advocates across Arkansas. Meetings in 2003 had higher-thanever attendance, and special meetings were held in the Russellville and Berryville-Green Forest areas to reach out to the Hispanic community. 9 10

7 U TILITY PROGRAMS L ouisiana L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Louisiana Programs Promote Homeownership, Education, Independence More than 20 percent of Entergy Louisiana s customers live at or below the poverty level. In 2003, Entergy Louisiana s low-income efforts established new programs and continued helping low-income residents through a variety of existing initiatives. This year Entergy Louisiana supported the establishment of Individual Development Accounts, or IDAs, for qualifying families in Louisiana, helping enroll approximately 600 low-income participants. This program was created to match savings accounts to encourage low-income working people to save money for the purchase or weatherization of a home or to earn a college education. After participants meet their savings goals and attend required financial training, the savings accounts are generally matched by a variety of Entergy Louisiana Low-Income Activity 2003 Percentage of People in Poverty in Parishes Served by Entergy public and private sources at a ratio from 1:1 to 5:1. To address the need for affordable housing, a partnership between Entergy Louisiana, the Louisiana Housing Community Development Corporation and Macon Ridge Community Development Corporation constructed 14 new homes for low-income and moderate-income families in central Louisiana. Entergy also launched an Educating Families campaign in which the company distributed energy conservation information packets to churches and community organizations, and provided customers with electric fans and compact fluorescent light bulbs. To help businesses, Entergy Louisiana awarded a $50,000 grant to the MicroEnterprise Development Alliance of Louisiana (MEDAL), promoting micro-enterprise development across the state in order to help more low-income families start businesses. We also helped our customers lower their utility bills by making their homes more energy efficient. Entergy awarded $60,000 in low-income grants to nonprofits for weatherization projects. More than 383 homes were weatherized across the state. Entergy retiree Roy Ferrington, Ouachita Multi-Purpose Agency and the Assumption Parish Police Jury joined forces and weatherized more than 250 of those homes. For the second year, Entergy employees volunteered for a Remember by Doing effort on Sept. 11 and weatherized homes and nonprofit facilities across the state. To educate our customers, customer service managers across the state conducted more than 340 expos that provided tips on energy conservation and weatherization. Entergy Louisiana awarded $455,000 in grants to nonprofit groups for a variety of low-income initiatives across the state. In June Entergy Louisiana s Project Care, the company s customer assistance fund program administered through the Calcasieu Council on Aging, received the Victorine Q. Adams Award for Outstanding Programs from the National Fuel Funds Network. Last year Entergy Louisiana raised $232,662 for Helping Hands and $137,119 for Project Care from customers, employees and retirees. To reach out to the state s political leaders, Entergy Louisiana sponsored a one-day strategic planning session in November for state agency heads to collaborate on a plan for reducing poverty in Louisiana. To continue communications among employees and lowincome advocates, Entergy Louisiana sponsored a low-income videoconference in which company employees joined forces with low-income advocates from across the state to discuss a number of low-income issues and initiatives. State Representative Elcie Guillory of Lake Charles and Michelle Guillory of Governor Mike Foster s office attended the BD -Weatherization Outreach - Conservation Outreach - Pilot Refrigerator Replacement Program - Special Projects Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% videoconference. Because unscrupulous lenders and check cashing businesses often gouge low-income people, a Predatory Lending Council was established to research these entities. The group is made up of Entergy employees, state low-income advocates and elected officials, and its mission is to develop strategies for reducing the number of Louisiana citizens who fall victim to predatory lending. Louisiana customers in the 1950s learn about properly wiring their homes for maximum energy conservation

8 U TILITY PROGRAMS M ississippi L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Mississippi Continues Outreach, Sponsorship and Training The philosophy driving Entergy Mississippi s low-income initiative is that people in need should not have to struggle with paying their utility bills. In 2003 ongoing programs as well as new initiatives helped make a difference in the lives of low-income Mississippians. The Earned Income Tax Credit (EITC) project sponsored by Entergy, VITA (Volunteers in Tax Assistance) and the IRS in the metro Jackson area, placed several million dollars into the hands of thousands of working poor households who otherwise would never have known they could claim this credit on their federal income tax return. Entergy Mississippi also lent computers to help the working poor claim the EITC. As a result of this effort, the Internal Revenue Service cited Entergy Mississippi s pilot program as perhaps the best example of an EITC program in the United States for Mississippi led the nation in percentage increase in EITC refunds, up nine percent, for a total of $741,111,990 distributed to working poor households in the state. Helping Hands is an outreach program for the low-income community that weatherizes their homes using volunteers from across the Entergy Mississippi service area. Employees and other volunteers replace doors and windows, add weather-stripping and caulk holes where drafts allowed heating and cooling to escape. Due to this unique effort, low-income families have saved money otherwise spent on utility bills. Entergy purchased all the necessary materials and conducted training for volunteer organizations such as World Changers, which came into the Jackson area and weatherized more than 30 homes. The program expects to have its annual goal of 125 homes weatherized by November. Entergy also partnered with the Foundation for the Mid South to sponsor regional workshops for advocate organizations interested in sponsoring Individual Development Account (IDA) programs for their clients. The first three sponsoring organizations were selected in the Entergy Mississippi service area, and more than 100 other interested advocate organizations sent representatives to Entergysponsored workshops held during To achieve a goal of permanent state funding for assistance, Entergy partnered with the Mississippi Association of Community Action Agencies (MACAA) to build a coalition to continue its push for a statewide public benefit fund to weatherize thousands of homes for low-income families. This initiative has the potential of permanently improving the poor housing stock that dominates Entergy s service area. Much work lies ahead to reach this goal of a statewide fund, but Entergy Mississippi is confident that the grassroots work completed in 2003 will pay dividends in the future. Donations to the company s annual customer assistance fund, Energy Concern, have risen by 11 percent through September to $157,508, after a record 18 percent increase in giving was registered in Energy Concern is a community-based program established by Entergy that provides bill payment assistance for low-income disabled and elderly customers. Energy Concern is funded In the 1950s and 1960s, Entergy spread the word about the benefits of electricity to all customers. through donations from employees, retirees, customers and stockholders. The Salvation Army administers the fund in Mississippi, determining which clients qualify for assistance. All administrative costs are paid entirely by Entergy Mississippi, and more than 4,500 customers have received benefits through Energy Concern during the past year. For the third year in a row, Entergy Mississippi sponsored initiatives designed to help low-income customers manage their summer electric costs. Powerful Solutions, a series of seminars conducted in 20 communities, shows residents how to weatherize their homes and keep energy bills manageable. In addition, more than 1,300 box fans were distributed via the company s annual Beat-the- Heat campaign to help lessen the impact the summer heat has on low-income customers, both physically and economically. Entergy Mississippi Low Income Activity 2003 Percentage of People in Poverty in Counties Served by Entergy Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% -Voluntary Weatherization - Powerful Solutions - Beat-the-Heat 13 14

9 U TILITY PROGRAMS N ew O r leans L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy New Orleans Enhances Community Service Tradition with New Partnerships, Funding Entergy New Orleans forged new partnerships and strengthened existing coalitions to assist those living in poverty in Kicking off the year with the Earned Income Tax Credit and Child Tax Credit program, Entergy mailed more than 300,000 bill inserts to educate New Orleans customers about these tax credits, and the low-income customers who took advantage of the credits received an average refund of $2,094. In addition, Total Community Action, a low-income advocate agency partner, established eight satellite offices with trained tax consultants to provide information about the EITC, and more than 2,200 families took advantage of TCA service. On the federal front, Entergy urged many low-income advocate agencies to provide support in the fight to increase funding for the Low-Income Home Energy Assistance Program and solidify the proposed Public Benefit Fund before the New Orleans City Council. At least 30 advocates wrote letters urging Congress to increase LIHEAP funds, and many of these same advocates expressed their support to the City Council for the Public Benefit Fund. When implemented, the Public Benefit Fund will provide financial assistance to customers for bill payment assistance and weatherization projects. Entergy New Orleans is working to establish a permanent PBF program following implementation of a pilot program using $6 million in funds set aside by the city council in December To teach energy efficiency to more customers, Entergy Company employees in New Orleans contribute their time to construct a home with Habitat for Humanity for a low-income family joined the Housing Authority of New Orleans as well as others to educate more than 2,000 customers on ways to save energy through six Energy Efficiency Expos and Project Care educational events. While bringing this information to customers is extremely important, Entergy New Orleans works hardest with employees and customers to provide bill payment assistance through Helping Hands and the Handicapped and Elderly Assistance Fund. More than $62,000 had been raised from customers and employees through September to assist those in economic need. This included more than $13,000 in employee donations, an increase of more than 20 percent over Entergy New Orleans established several Individual Development Account (IDA) programs and offered educational seminars to advocates geared at encouraging increased participation in IDA programs in the area. IDAs are matched savings accounts that provide incentives for individuals to escape the cycle of poverty by saving money to accumulate assets. The participants also receive financial management training, and their savings can be used to purchase or weatherize a home, pay for college or job training, or start or expand a small business. In New Orleans, the renters outnumber homeowners, and two large-scale housing initiatives benefiting low-income residents are currently underway to help change this. Entergy, through the Comprehensive Central City Initiative of New Orleans, will make more affordable housing available by building 50 duplex and single affordable homes within the year. Entergy New Orleans also will ensure each new home meets energy-efficiency standards. In addition, Entergy works with the Finance Authority of New Orleans to grant 50 New Orleans-area low-income families $1,000 for financing a new home. The grants target single parents who are first-time homebuyers, and the new homeowner must complete energy management and new homeowner training before receiving the grant. Entergy also established Gate Keepers, a program whereby contract meter readers and other Entergy employees visit residential customers homes monthly and identify the elderly or isolated individuals who are in need of assistance from the appropriate social service agencies. In its continuing efforts to communicate with local lowincome advocates and service providers, Entergy welcomed the associate director of outreach for the White House Office of Faith-Based and Community Initiatives, Jeremy White, who spoke to advocates in August about the role his office plays in directing faith-based and community organizations toward opportunities to compete for funding and grants from various federal agencies. Entergy New Orleans Low Income Activity 2003 Percentage of People in Poverty in New Orleans (Map shows City Council Districts) Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% - Energy Efficient Expos - VIA Link - Elementary Outreach During the 1940s and 1950s, Entergy New Orleans provided transportation as an essential public service through electric street cars and buses.

10 U TILITY PROGRAMS T exas L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Texas Builds Legacy Through Projects, Programs and Paint In Entergy Texas introduced new programs, expanded familiar ones, and celebrated 20 years of Project CARE s contributions to the lives of Southeast Texas senior citizens. Habitat for Humanity became Entergy Texas signature project with approximately 240 employees not counting many helpful friends and neighbors picking up hammer and nails to help build two houses in Port Arthur and Conroe. Entergy Texas also served for the second year as a key player in a state-sponsored program to weatherize homes in a Beaumont neighborhood where nearly 60 percent of the residents live below the federal poverty level. In July Entergy received a $33,000 grant from the Public Utility Commission of Texas to weatherize nearly 20 Beaumont homes. The Southeast Texas Family Resource Center identified homes to be weatherized while technical experts with another partner in the project, Xemplar Energy, completed the task. Entergy Texas Low Income Activity 2003 Percentage of People in Poverty in Counties Served by Entergy Less than 15% 15% to 19.9% 20% to 24.9% 25% to 29.9% Over 30% -Weatherization Projects - Conservation Outreach -Entergy Assist - Energy Saver Discount Other weatherization programs taken on by Entergy Texas this year include: Operation Weather Watch Conservation Kits distributed to educate low-income customers on how to weatherize their homes. Entergy s Hard-to-Reach Standard Offer Program, a program designed to reduce energy demand in the low-income residential sector by working with energy efficiency service providers to determine the most useful tools at low-income customers homes. The primary objective of this program is to achieve cost-effective reduction in peak summer demand. Thus far over 3,000 customers have saved more than 620 kilowatts of demand on the electric system. EntergyAssist, a weatherization partnership with local social service agencies to assist low-income customers whose incomes are at or below 125 percent of the federal poverty level. Paint-a-Thon, improving a low-income senior citizen s home. Partnership between Entergy and the United Methodist ARMY, a summer service effort of the United Methodist Church. This year, Entergy Texas provided funds for ARMY workers to weatherize 35 homes belonging to elderly and disabled customers. Beat-the-Heat was bigger and better in 2003, and once again Entergy Texas partnered with service agencies throughout its service territory to provide a record 1,520 fans to low-income customers during the summer. Entergy Texas worked aggressively to keep its partner agencies and the public informed regarding the status of funding for the federal Low Income Home Energy Assistance Program (LIHEAP). Entergy sent letters to 32 southeast Texas newspapers urging Congress to take action to increase funding for the program. Project CARE received special attention this year when Entergy and its many partner agencies celebrated the program s 20th anniversary. Birthday parties were held at each agency location, giving Entergy the opportunity to thank the program administrators for their hard work. Over these two decades, Project CARE has provided $2.7 million to pay bills for more than 36,000 customers in southeast Texas. Project CARE s campaign this year was very successful, with customer and employee contributions increasing by more than 14% over Contributions through September totaled more than $140,000. Entergy Texas also promoted the new Individual Development Accounts (IDA) programs, which help working At least 240 Entergy employees joined to help build two Habitat for Humanity homes in Port Arthur and Conroe, Texas. poor individuals and families build assets. Meanwhile, existing initiatives remained in place, such as discount rate programs targeting the low-income and elderly. To date more than 30,000 low-income customers participate in either the Entergy Saver Discount Program or the Senior Citizen Discount Program, both of which waive the $4.09 monthly customer charge on bills. To get the low-income program message out, Quarterly Coffee Break meetings were held to reach out to advocates by providing a networking opportunity among social service agencies. In addition, more than $28,000 in grants has been awarded to qualifying programs in support of lowincome efforts. At mid-year, a new communications tool was developed a Texas-specific newsletter to share progress and plans with the company s many partner agencies. The first Advocate Connection was published in July and provided a round-up of the many programs under way to assist low-income customers. The second issue served as an introduction to the October 9 Texas low-income summit held in New Caney, yet another new project to ensure a successful and positive partnership with social service agencies in Texas. About 70 people attended the summit, which brought together low-income advocates from throughout southeast Texas. Entergy Texas president and CEO Joe Domino reinforced Entergy s support of nonprofit activities, assuring them Entergy Texas is serious about its commitments to help low-income people in our state. Volunteers in Texas work to weatherize and improve the home of a low-income customer

11 C ONTRIBUTIONS L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy s Employees, Volunteers, Retirees and Customers Join Hands to Alleviate Poverty To break the cycle of poverty, Entergy must give our lowincome customers the resources to improve their own lives. Our lowincome efforts are only part of an overall mission and long-term commitment to enhance the quality of life throughout the communities we serve. Entergy supports community-based projects that focus on social enrichment and improvement, and a few examples of Entergyfunded projects include job training, parenting education, day care/afterschool care and neighborhood revitalization and safety. Employee Volunteerism As a company, Entergy is focused on the needs of its customers, and when the needs are great and resources scarce, volunteers are essential to help fill the gap. Entergy s Community Connectors program is designed to celebrate and honor our employees and retirees commitments. Through Community Connectors, Entergy employees and retirees log and redeem their volunteer hours for grants to the nonprofit organization of their choice. An individual can earn up to $250, and a team can earn $500 per year. So far this year, more than 9,370 hours of volunteer service have been logged, valued at approximately $155,000 and generating additional contributions of $13,000 in grants. assisting other charitable institutions that focus on low-income initiatives, community development, education and literacy programs throughout the company s Arkansas employees helped alleviate the summer s heat through the Beat-the-Heat program with service territory. The gifts of fans to low-income customers Entergy Charitable Foundation supports programs that provide new ways to help families. The target areas include sustaining families and improving their self-sufficiency, technical assistance and training for nonprofit organizations, and homeownership preparation and energy management for low-income individuals. In addition, the Entergy Charitable Foundation provides college scholarships and funding for programs targeting teacher and student initiatives that affect a child s access to quality education. By the end of 2003, Entergy and the Entergy Charitable Foundation will have funded more than 3,000 grant requests totaling more than $10 million in cash contributions. This funding has benefited programs that range from rural food pantries to high school drop out prevention initiatives to scholarships and job training. The Entergy Charitable Foundation donated $100,000 in 2003 to fund five Habitat for Humanity 31% Foundation for the Mid South, the Entergy Charitable Foundation awarded $600,000 to help launch 22 Individual Development Account programs this year. For more information about IDAs, see page 28. Matching Gifts In 2002 Entergy matched employee gifts to the United Way campaign dollar-for-dollar, and employee, retiree and corporate gifts totaled nearly $4 million Grant Summary by Program Area 4% Arts & Culture 29% 11% 25% The United Way unites community resources to assist low-income families. Like Entergy, the United Way helps people, Community Improvement and Enrichment Education/Literacy Healthy Families Other families and neighborhoods help themselves. The United Way agencies provide such basic services as food, shelter, child care, education and job training to individuals in need. Entergy also matched employee donations to Customer Assistance Fund programs, which assist elderly and disabled customers who are unable to pay their utility bills. So far this year, employee contributions and their match Since the company s beginning in 1913, have generated $303,000. Entergy has consistently been a major contributor to the United Way and its predecessor charitable organizations, the Community Chest and the Red Feather Campaign. The Entergy Charitable Foundation In 2000 the company launched the Entergy Charitable Foundation, a private, nonprofit foundation focused on addressing the needs of low-income families and individuals. The Entergy Charitable Foundation is dedicated primarily to homes in several states, and more than 250 Entergy employees donated their time to help build the homes. Other programs such as Individual Development Accounts (IDAs) help lowincome individuals and families build assets, which will one day enable them to purchase a home, improve and weatherize a dwelling or pay for an education. Working through the Entergy employees in Texas pause to receive instructions during the Habitat for Humanity blitz build

12 C ONTRIBUTIONS L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy s Customer Assistance Funds Entergy developed Customer Assistance Funds (CAF) as a means of assisting low-income customers. The program consists of community and employee efforts to raise money to assist elderly and disabled customers in paying their utility bills in times of financial emergencies. Entergy s shareholders match all employee and retiree contributions dollar-for-dollar. In the company s various operating localities or jurisdictions, the customer assistance funds have individual identities Energy Concern (Mississippi), Project Deserve (Arkansas), Project Care (Texas and west Louisiana) and Helping Hands (New Orleans and east Louisiana). In each of these jurisdictions, the program is administered by local low-income service providers and advocate partners like the American Red Cross, the Salvation Army, the United Way, Total Community Action and the Councils on Aging. All of the agencies that administer the CAF screen and select the executive officer Wayne Leonard, wrote to all of the nation s utility chief executives encouraging each company to become members of and donate to the National Fuel Funds Network (NFFN), headquartered in Washington, D.C. In a follow-up letter this year asking for support of NFFN, Leonard was joined by Wayne Brunetti, chief executive officer of Xcel, signifying that the message is reaching the decision-makers of utilities nationwide. The Entergy Charitable Foundation awarded NFFN a $15,000 grant in 2003 to support its programs and has more than doubled that amount through in-kind support and payment of annual dues for the six separate member funds. Regardless of where they are located in the states served, Entergy is committed to helping the impoverished and hopes to build on its CAF donations during the 2003 fundraising drive. Three Keys to Success This increase in contributions to CAFs is a result of more thorough peer efforts by employees and a stronger communications focus. These peer efforts have taken on the highly Entergy s Customer Assistance Fund Coordinators are: Energy Concern-Mississippi Beverly Andrews, Valerie Mabry Entergy Mississippi Helping Hands-Louisiana Janice Brown, Eunice Harris Entergy Louisiana Helping Hands-New Orleans Preston Favorite Entergy New Orleans Project Care-Louisiana Beverly Trahan, Stan Guillory Entergy Louisiana Project Care-Texas Brenda Broussard, Paula Odom Entergy Texas Project Deserve-Arkansas Drew Clem, James Eric Jones, Sherry Wilson Entergy Arkansas The low-income team discovered from 2003 research that more than 60 percent of Entergy s customers would donate more to the customer assistance fund if they understood three main components: the needs of people being helped, how the money is being spent and the accountability processes used by agency partners. To respond to these concerns, Entergy frequently communicated to employees and customers the effect their donations have on their low-income neighbors. In particular, New Retiree Sets Standard for All to Follow Customer Assistance Fund coordinators try to persuade their fellow workers to donate. In fact, Journeyman Serviceman Kenny Jones, who retired May 31 after 30 years with Entergy, embodies the company s mission of customer service and is a model for all of us to follow. Jones s co-workers in the Russellville Network and Entergy Arkansas pitched in to a parting retirement gift of several hundred dollars for Jones. After three decades of serving customers, Jones understood the obstacles the low-income faced daily. He also was familiar with Project Deserve and its mission of providing funds to Entergy customers in the most desperate financial circumstance. When presented his gift from colleagues, Jones insisted that every penny be donated to Project Deserve. His generous spirit and concern for his customers make him an example for all of us to follow. the CAF communications team wanted to make certain that employees and customers knew all donations are administered by partnering agencies, and that no administration costs are paid for with the donations. Entergy s communications team told actual stories of customers who needed help, and constantly stressed that recipients of financial assistance. successful United Way model for 100 percent of the funds collected go directly to the aid of low- Last year more than 16,820 families received help when encouraging employee participa- income customers. they were most in need. Through the end of September 2003, tion, in which each business unit As a result of consistent communications efforts, donations Entergy customers, employees and retirees have donated more appoints one or two employee have increased. The National Fuel Funds Network awarded than $900,000 to help the elderly and disabled with their coordinators, who as low-income Entergy First Place utility bills. Total employee contributions are up by more than champions recruit additional Overall awards 13 percent over 2002 due to the efforts of a dedicated group of coordinators for individual for both its in-house employee volunteers who asked their colleagues to contribute. departments or work groups. produced messages The Customer Assistance Fund coordinators are projecting that and its professionally for 2003 the company will raise approximately $1.5 million in pledged and matched funding. Through September employee and customer donations were averaging 6.8 percent higher than last year, and 2004 is expected to experience even better results. National Outreach As a way to expand leadership, in 2002 Entergy s chief Inset: Entergy Mississippi employees participate in the Helping Hands weatherization program earlier this year. Right: The Quitman Clean-Up Crew take a moment to have their photo made during a 1940s company community clean-up effort. produced messages. In 2004 and beyond, Entergy hopes to involve all of its business units in fuel funds programs and to work with our non-profit partners as they ask other utilities and businesses to support their efforts

13 C OMMUNICATIONS L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Empowers Customers Through Information, Education As the local power company, Entergy understands it takes more than electricity to empower our customers. Information is power, and Entergy has undertaken dynamic efforts to give as much information as possible to our low-income customers and low-income service providers. During the height of the summer and winter seasons, customers usually receive the highest electric bills of the year. Customers in our service area will struggle with their bills and turn to low-income advocates and service providers for help. Entergy provides information and services so they can manage their bills and even reduce them without sacrificing comfort. All materials are written with low-income families in mind, and the most comprehensive are available in Spanish as well. Customer Communications hurry, this information can be downloaded and printed from the Entergy Web site, This year Entergy s low-income team created a new newsletter, Advocate Power, designed just for advocates. Issued quarterly, it outlines how customers can save money on their energy bill and how advocates can work with the company to leverage resources for customers. It is mailed to 3,000 low-income advocates, service providers and churches. The Economics of Education A Report Cost/Benefit of Preschool Education Entergy s commitment to our communities includes $120,000 improving educational opportunities for children in $116,207 $100,000 poverty. Along with charitable grants to education, the company funded a 2002 study to determine public $80,000 benefits of high-quality preschool education for lowincome children in Arkansas, Louisiana, Mississippi $40,000 $60,000 and Texas. Released at Entergy s 2002 Low- $20,000 $12,282 Income Customer Assistance Summit, the study $0 identifies the benefits of investing in preschool education. We distributed the Cost Benefit report to public officials and educators across the region. The study quantifies benefits such as crime reduction, improved graduation rates and increased employment and tax levels. It was well received by policymakers in education reform. The graph summarizes the nationwide average costs and benefits of tax dollars invested in high-quality preschool education for each low-income 3- to 4-year-old child. Other Materials Available To order any of the materials developed for low-income programs, please contact Entergy s Low-Income Champions in your area. To discuss special needs or to schedule a presentation for your group or organization, please contact your local Entergy Customer Service Manager or any one of the Low-Income Champions listed in this report. In the past year, Entergy used television, newspaper advertising, radio and bill inserts to provide valuable information to customers. Information about ways to manage utility bills better was a common theme. Specific topics included ways to sign up for the earned income tax credit, tips for lowering electric bills and how to sign up for Pick-a-Date and levelized billing. Advocate Power For advocates who want to provide information to their clients, a simple call to Entergy will result in the mailing of numerous products to any given address. But for advocates in a Budgeting Ideas and Assistance Programs from Entergy People who just don t have the money to pay their electric bills can find help here. This brochure offers a variety of ways to get help directly from Entergy. Spanish version available. Energy-Saving Projects Outreach Kit Here is the ultimate resource for organizations that want to assist their communities. It includes a video, suggestions on ways to start a program in your area, plus a wealth of good information. A must have. Communications with customers is as important today as it was decades ago when Harvey Couch 23 started the first radio station in Arkansas. 24

14 F EDERAL EFFORTS L OW-INCOME C USTOMER A SSISTANCE Progress Report Entergy Gathers Strength with New Allies to Support Federal Low-Income Initiatives With billions of dollars going toward the fight against terrorism and the War in Iraq, as well as the subsequent and costly occupation of that country, coupled with a rising deficit, 2003 was not a good year for expanding domestic programs in the federal budget. Nevertheless, Entergy honored its commitment to support federal assistance by bringing additional allies into the effort. Edison Electric Institute CEO Task Force on Low Income Established Earlier this year, Entergy proposed that the Edison Electric Institute (EEI), the electric industry s trade association, establish a low-income task force to focus not just on federal issues impacting this segment of the population but also to share best practices information among the member companies. Entergy was asked to chair this CEO-level task force, and a survey of existing programs that serve low-income customers in individual companies has already been completed. CEOs in the taskforce have put federal programs such as LIHEAP and Weatherization Assistance Program high on their Washington offices list of priorities, and the task force will establish some overall goals for the industry and will meet regularly to assess their progress. Our goal is to bring more partners to the debate on funding low-income programs. Other Government Representatives Endorse Increase in LIHEAP Over the course of the year, the Southern States Energy Board, Southern Governors Association, Western Governors Association, Southern Legislative Conference and the National Association of Lieutenant Governors all endorsed resolutions promoted by Entergy calling for increased levels of funding for LIHEAP and related programs. In a July resolution, the National Association of Regulatory Utility Commissioners also endorsed funding LIHEAP at the $3.4 billion level. All these groups worked tirelessly with Entergy in efforts to increase appropriations and the authorization level of the LIHEAP program. At one point, this coalition succeeded in getting over 150 members of Congress to sign a letter with Congressmen Chip Pickering (R-MS) and Ed Markey (D-MA) asking that LIHEAP be funded at $3 billion. In a similar effort in the Senate, even more allies, including the AARP and Western Governors Association, joined the crusade. Although unsuccessful this year, this informal coalition of LIHEAP defenders continues to grow, and Entergy is committed to identifying others to join the effort to bring equity to the distribution of federal dollars. In Congressional hearings and backrooms, the LIHEAP formula was debated and argued, a representative of the Southern States Energy Board, which has been a partner with Entergy in the fight to put more money into the program as well as change the formula, testified before a House Subcommittee that the LIHEAP formula should be reformed to provide greater equity to Southern states or that total LIHEAP funding should be increased dramatically. After contentious arguments in public and behind the scenes, Speaker of the House Dennis Hastert stepped in and asked Congressmen Pickering and Gene Green (D-TX) to withdraw the formula change amendment they were offering to the comprehensive energy bill under consideration in the Energy and Commerce Committee. The Speaker said he recognized the amendment had the votes to pass, but expressed his fear that it would doom the entire energy bill. Green and Pickering agreed to withdraw their amendment, but not before obtaining agreement on another amendment that, if adopted by the full Congress, would require the Department of Health and Human Services to conduct a study of the existing formula. In the Senate, Mary Landrieu (D-LA) continued her efforts to address the formula question. Although her amendment passed the Senate Energy Committee, in a complicated parliamentary procedure it was dropped from the bill before final consideration. Although it is in the House-passed bill, it appears that the House-Senate Conference on the bill will not include a study provision. However, Senator Landrieu has indicated that she will ask the General Accounting Office for a study, an action which does not require Congressional authorization. From left: CEO Wayne Leonard of Entergy Corp., Mayor Ricard Webster, President Clinton, Rep. Bennie Thompson and an unidentified associate walk past closed shops on Issaquena Avenue in Clarksdale, Miss., Tuesday. Clinton is unveiling $64 million in community development grants to help poverty-stricken communities such as Clarksdale, Appalachia and Watts. The visit to Clarksdale is part of a four-day tour through poor communities as Clinton highlights what the administration is touting as the untapped markets in America s rural areas and inner cities. Courtesy of The Washington Post and Associated Press. Publication date July 19, In the midst of the great flood of 1927, future President Herbert Hoover enlisted Harvey Couch to help with the relief effort

15 F EDERAL EFFORTS L OW-INCOME C USTOMER A SSISTANCE Progress Report LIHEAP Authorizations Increased For FY 2004 The good news about LIHEAP this year is that authorizations for this key program will be lifted this year from $2 billion year to $3.4 billion. Increasing the authorization level will be a solid victory for defenders of the program. However, in a tough year for domestic appropriations, it appears that LIHEAP funding will do well to hold its own ($1.79 billion in FY 2003 plus a $200 million carry over in emergency funds). The Senate appropriations bill contains $2 billion in base funding for LIHEAP programs. The House bill contains $1.7 billion in base and $100 million in emergency funding. The President has recommended a total of $2 billion. Royalties-In-Kind Program Included In Energy Bill In yet another attempt to get more federal money for lowincome energy assistance, Congress has established a natural gas Royalties-in-Kind pilot program that would allow substantial amounts of natural gas to be sold below market value in order to lower fuel rates of low-income customers. Entergy is following this development with interest, particularly to ensure: (1) that the benefits of lower cost gas could be passed along not just to direct gas customers but to electric customers as well, by virtue of the gas being made available to electric utilities as a generating fuel, and (2) that the RIK dollars are in addition to and do not supplant LIHEAP funding. If a pilot RIK program can be designed for Entergy s service area, the company will pursue it. Weatherization Appropriations On Way to Increase Over FY 2003 The House Appropriations Committee has recommended $240 million in appropriations for the Weatherization Assistance Program (WAP), which is below the President s request of $288 million, but still well above this year s level of $223 million. The Senate number is slightly less ($230 million) and differences still remain to be resolved in conference. Entergy strongly supports increases in WAP funding. The Company s 250,000th customer watches as employees install the first electric light fixture in her home. She was more than 90 years old and had never seen an electric light until that day. Individual Development Accounts May See Increase The Senate-passed version of the Charitable Aid, Recovery and Empowerment Act (CARE) includes provisions that would expand the IDA program to cover 300,000 additional people over seven years. Although the House-passed version does not include the IDA expansion, Entergy continues to work with the members of the House-Senate conference to amend the legislation to include IDAs. One year into the Mid South Individual Development Account (IDA) Initiative, Entergy s initial investment of $600,000 is making a tremendous impact throughout the region by helping low-income families develop assets. The Foundation for the Mid South has used these funds to provide in-depth training to more than sixty IDA practitioners, matching dollars for at least 373 matched savings accounts, and operating support for 22 organizations totaling $257,600. IDA programs supported through the Mid South IDA Initiative have raised an additional $398,121 in operating funds this year and are currently providing more than $2,260,000 to match the personal savings of lowincome families working to achieve the American Dream. While IDA programs provide an incentive for hard-working people to accumulate wealth in the form of homeownership, education and small-business development, participants also engage in life-changing behaviors, such as lowering personal debt, budgeting, saving regularly and planning for the future. In fact, participants in Mid South IDA programs have saved nearly $500,000 toward the purchase of their assets. In addition to this important family level impact, IDA programs make a great difference in communities, as indicated by the $10,104,184 in mortgages leveraged through homeownership accounts in Mid South IDA programs over the last three years. Entergy s support of the region s IDA movement is seeing both social and financial returns that are making a huge difference for the families and communities we serve. For this reason, we are proud to renew our support of $600,000 to the Foundation for the Mid South to continue the great work of the Mid South IDA Initiative. Looking Ahead In summary, even though federal dollars were scarce and poverty continues to worsen in the Middle South region, Entergy and its low-income allies were successful in recruiting new allies and energizing advocacy groups to join us in our efforts to focus attention on the specific needs of low-income individuals and families. Much more work lies ahead if we are to succeed in preserving and increasing federal funding levels, including expanding support by other electric and gas utilities, regional and national trade and professional associations, customer advocates and members of Congress in the South and elsewhere. Entergy s message and that of our advocate allies is simple: Congress can improve the plight of low-income people in our region by either changing the LIHEAP formula to direct a fairer share of funding to our states, or by increasing total appropriations to a level that would provide help to significantly more than the paltry 15 percent of eligible customers who can now obtain assistance nationally. Entergy would prefer to see the latter a rising tide of funding that lifts all states but until that happens we will continue to fight for formula equity. Entergy encourages our low-income advocates to keep these issues in front of their state and federal elected officials at every opportunity by communicating with them in person, through phone calls and writing s and letters, as well as sending articles to local newspapers. We will call on you for more help in Entergy, s weatherization programs all stress the safe use of electric and gas utilities, and the importance of smoke, fire and carbon monoxide detectors

16 R ESEARCH L OW-INCOME C USTOMER A SSISTANCE Progress Report Research Reveals Customers Needs, Desires, Attitudes and Willingness to Give Myths abound when it comes to talking about the poor and programs that serve them in the United States. All of us have heard low-income people referred to as deadbeats or welfare cheats, and there is a perception that as a rule poor people have bad credit and don t pay their bills on time. It is also frequently said that government programs don t work and should be supplanted by private and faith-based assistance because charity will provide. The facts are quite contrary to these common misperceptions. Armed with the facts, we are in a position to make changes in the way we do business and to educate policy-makers on the need for changes in laws, regulations and public policies. In order to provide public policy decision makers with the facts about low-income customer needs, Entergy has made a five-year effort to destroy the myths and assumptions that surround these issues. Entergy research efforts have focused on: the size and nature of the need for assistance, strategies and programs for addressing needs, attitudes and behaviors of low-income customers themselves, the willingness of low-income and non-lowincome customers to give to help their neighbors, and the beliefs customers in general have about who should take action to make improvements and address the problems of poverty. Our research program is important to the success of our combined efforts to persuade public officials that the citizens of our region want government to take a more active role in assisting low-income families. Two years before the first low-income Summit was held in 1999, Entergy turned serious attention toward gaining a better understanding of who our low-income and working poor customers are, what they and other residential customers believe should be taking action to meet those needs. Our efforts in were focused on the attitudes and needs of customers in Texas. Beginning in 1999 we began determining attitudes toward assistance programs and communicating the results to public officials across all four of the Entergy states. The research we have completed since 2000 has taught us many valuable lessons. Our research in the credit and collections area has revealed that the overwhelming majority of low-income customers have excellent payment records, do not overtax our phone centers or other customer services, and in many instances may cost less to serve than non-low-income customers. Our public policy research has indicated that people in our region understand that there are families in need; that these families, especially the elderly and disabled living on fixed incomes, deserve our assistance; and that government, business and individuals all have a role to play in providing this assistance. These findings encourage us to find out more, to communicate the facts to decision makers and to improve and leverage our efforts with our allies. Energy Burden, Affordability Gap and Economic Benefits of Energy Assistance This year Entergy sponsored two studies by nationally respected low-income expert Roger Colton. The first is a groundbreaking study on the national energy burden and the affordability gap. He has tailored his reports to our companies and states so local decision makers know they are relying on accurate information. The entire study is available online at: or by contacting Entergy. A second study documents the economic benefits of federal, state, local and charitable spending on energy bill payment assistance and weatherization programs. These studies were designed to provide data to fight many of the misconceptions surrounding low income issues and to show positive economic impact from low-income assistance. Combined, the two Colton studies demonstrate that the need for energy assistance is stunning in its magnitude in the U.S., but particularly in the South. They also show that expenditures received by our states and used to pay utility bills for the low-income and provide home improvements and energy efficiency have very substantial job and economic multiplier effects in our states economies. The reports support efforts to increase funding from all sources for low-income energy assistance, since everyone benefits our customers, our states economies and the company itself. LSU Survey of Low-Income Customers This year, at the request of our credit and collections department, Entergy partnered with the Louisiana State University Public Policy Research Lab to conduct a customer research and econometric modeling study designed to answer the question, Who are Entergy s Low-Income Customers and How Can Entergy Best Help Them? The study s preliminary results are expected to become available in early 2004 and will be used to help Entergy better identify and serve its low-income customer base. The research will statistically document why people have difficulty paying their bills, how they prioritize their payments and what kinds of assistance they receive in paying their utility and other bills (government assistance, churches, family, friends). The results of the research will be used to enable Entergy to fine-tune its existing programs that already exist to assist low-income customers and to design new ones that directly respond to our customers needs. Southern Education Foundation Following up on a landmark study conducted by professional economic consultants in 2001 for the 4th low-income Summit, entitled The Economics of Education Public Benefits of High-Quality Preschool Education for Low-Income Children, Entergy has this year commissioned a study by the Southern Education Foundation. The Miles To Go reports think about helping their neighbors in need, and who they 29 30

17 R ESEARCH 2003 INITIATIVE LEADERSHIP being prepared for Mississippi and Louisiana will examine how well each state is educating all children, and how the states under-investment in the education of low-income and minority students can be a primary obstacle to the entire state s economic and social progress. The reports will help build a new awareness and, we hope, spur new initiatives, policies and practices that assure a good education for low-income students. These studies and reports will be similar to a Miles to Go report prepared for Arkansas in Edison Electric Institute Survey This year Entergy participated in a low-income customer program audit conducted by the Edison Electric Institute (EEI). EEI s survey of almost 200 investor-owned electric utilities is intended to reveal the breadth and scope of low-income programs offered by electric companies across the country. The research is the first product of a new low-income task force established by EEI at Entergy s suggestion and chaired by Entergy executive vice president Curt Hebert. Entergy will use the results of this survey to identify new program ideas and benchmark its existing programs against the best ones in the industry. National Fuel Funds Network Survey The National Fuel Funds Network is now conducting the first national survey of fuel funds in over a decade. As a financial supporter of NFFN and through its membership on the board of directors, Entergy contributed suggestions and recommendations concerning the research instrument. When complete, the study will detail the types of fuel funds that exist in the U.S. (statewide, local, regional, utility-only) and the practices in which they engage to fund their efforts. Entergy hopes to gain valuable insights that will help us increase the level of fuel fund contributions from customers and employees, and to learn new ways to boost the efficiency of our existing programs that are administered by non-profit partner agencies. Conclusion This progress report summarizes the work that has been done by hundreds of Entergy employees and thousands of advocates across our region. We are grateful for their commitment and dedication to the shared goals of providing outstanding service to our low-income customers and to addressing the larger issues of poverty that plague the communities we serve. In our desire to build a better world, we have taken risks, made mistakes and suffered some defeats. We must learn from these setbacks and adapt our efforts to today s challenges. To do this requires stronger and larger partnerships, a commitment to innovative solutions and a willingness to change. Harvey Couch never forgot the lesson he learned at the blackboard, Quitters never win and winners never quit. Neither will we. That is our commitment to you today. Entergy Utility Advisory Board Representatives Arkansas Rev. Hezekiah Stewart, Executive Director Watershed Human & Community Development Agency Louisiana Lydia Taylor, Director Operation Hope Arkansas Rose Adams Executive Director Arkansas Community Action Agencies Association (ACAAA) acaaa@aristotle.net Larry Cogburn Executive Director Central Arkansas Development Council lcogburn@cadc.cc or hfelty@cadc.cc Chris Allen, Entergy MSAG Liaison Customer Service Manager Entergy Arkansas mallen1@entergy.com Troy Branscum Weatherization Program Manager Arkansas Department of Human Services troy.branscum@mail.state.ar.us Robert Wilford Executive Director Crowley s Ridge Development Council , ext. 27 crdc.net rwilford@crdcnea.com Louisiana Jo Cotten Supervisor, Information and Assistance East Baton Rouge Council on the Aging, Inc , Ex. 234 i-and-a@seniorsurfers.org Dr. Clara T. Byes Community Liaison Councilman T. J. Butch Ward - Dist cbyes@jeffparish.net Clifton Avant, Entergy MSAG Liaison Manager, Economic Development Entergy Services, Inc cavant@entergy.com Mississippi Billy McCain, Executive Director Bolivar County CAP New Orleans Bridget Vinson, Executive Director Humanitas 2003 Entergy Multi-State Advisory Group (MSAG) Sr June Meyer Catholic Community Services, Baton Rouge, Louisiana Dorothy Oliver Executive Director LaSalle Community Action Assn., Inc catcenter@kricket.net Mississippi Texas Sr Betty Adams Director of Social Services and Housing Sacred Heart Southern Mission, ext.1013 badams@shsm.org Billy McCain Executive Director Bolivar County CAP capdir@panola.com Dean Terrebonne Catholic Charities of the Diocese of Beaumont The Multi-State Advisory Group (MSAG) seeks to increase the resources available to customers through social services organizations in the Entergy service areas. Meeting several times a year with the company s low-income champions, the MSAG works with Entergy to advise and establish programs to make utility bills affordable for low-income customers in all Entergy service areas. The MSAG also recommends programs, goals, objectives and priorities to Entergy and other collaborative partners. Miles Pat Nelson, Entergy MSAG Liaison Manager, Regional Customer Service Entergy Mississippi mnelson@entergy.com Ron Anderson Program Director Mississippi Department of Human Services randerson@mdhs.state.ms.us William Bill Franklin Executive Director Southwest Mississippi Opportunity, Inc Smo@cableone.net Entergy employee and students unpack energy-related science materials 31 during the Company s school education effort in the 1970s and 1980s. 32