HR Best Practices in the Aftermath of Hurricanes Katrina

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HR Best Practices in the Aftermath of Hurricanes
Katrina Rita-- Entergy --

• May 5, 2006
• SIOP Conference

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Discussion Outline
QA
Lessons Learned
HR Implications
Challenges
Hurricane Katrinas Impact
Hurricane Ritas Impact
Who Is Entergy?
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Who is Entergy Corporation?

• Fourth largest electric utility in the U.S.
• Headquartered in New Orleans, LA
• Service Area LA, AR, MS TX
• Generation 30,000 MW (2nd largest nuclear
  generator in the U.S.)
• Customers 2.6 million
• Ann. Revenue 10 billion
• Employees 14,000
• Numerous Awards, including
• 1996 2006 Edison Electric Institute
  Emergency Response and/or Assistance Awards
• 2003 2005 Dow Jones Sustainability Index
• 2005 Edison Electric Institute - The Edison
  Award
• 2003 2004 Edison Electric Institute Award,
  highest total shareholder return
• 2003 Platts/BusinessWeek, Energy Company of the
  Year
• 2003 Platts/BusinessWeek, CEO of the Year

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Hurricane Katrinas Impact- Power Outages-
1.1 million customers without power
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Hurricane Katrinas Impact- Destruction
Flooding-
17,000 square miles affected in Louisiana
20,000 square miles affected in Mississippi
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Hurricane Katrinas Impact- New Orleans Under
Water-
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Hurricane Ritas Impact

• Second worst storm in company history
• Heavy wind damage to transmission system and
  generation plants
• 766,000 outages in SE Texas and SW Louisiana
• Three days of rolling blackouts for 142,000 Texas
  customers

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Together Both Storms -Covered an Area Greater
Than the Size of Entergys Service Territory-
Total Outage Map for Both Storms Due to Katrina
and Rita
Service Territory Outages Square Miles
120,000
79,000
41,000
Katrina
Rita
Total
Service Territory 115,000 square miles
Out of Service (Red) Not Affected (Green)
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Together Both Storms -Caused More Damage Than We
Had Ever Experienced-
Outages At Peak
Generation Units Offline
Transmission Lines Out
Transmission Substations Out
699
526
32
344
436
18
14
263
182
Katrina
Rita
Total
Katrina
Rita
Total
Katrina
Rita
Total
Distribution Poles Destroyed
Distribution Circuit Miles
Customer Outages (millions)
72,300
28,900
1.9
43,800
17,400
1.1
28,500
0.8
11,500
Katrina
Rita
Total
Katrina
Rita
Total
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Each Storm Had Unique Challenges to Address
Unique Challenges
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Challenges Met and Expectations Exceeded
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HR Implications -Katrina-

• Redeployment of Headquarters Employees
• Approximately 1400 employees
• Most were redeployed to alternate work
  locations
• Approximately half had uninhabitable homes

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HR Implications -Katrina, cont.-

• New Orleans Area Field Employees
• Approximately 700 required to remain in the New
  Orleans area
• Approximately half had uninhabitable homes
• Those with uninhabitable homes were assigned to
  company secured apartments, trailers or lived
  with relatives
• Some reassigned to undamaged company facilities
  (offices and staging areas)

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HR Implications -Rita-

• Hurricane Rita did not significantly impact
  business continuity
• All company facilities available for use within 2
  weeks
• However, some employees were impacted
• Delayed redeployment of headquarter employees to
  Beaumont and Houston
• Approximately 60 field workers in the area had
  uninhabitable homes

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HR Implications-Services Provided to Employees
Families-
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Services Provided to Employees Families
(continued)
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Lessons Learned

• Treat employees consistent with the companys
  values
• Provide counselors on-site
• Clearly define roles and responsibilities
  pre-storm for employees to maximize resource
  allocation
• Develop contingencies for loss of
  telecommunications infrastructure
• Develop a robust employee emergency contact
  plan/process

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You Can Count on Entergy
-- The Clarion-Ledger
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QA