Assessing and Responding to Climate Risk

Building a Resilient Coast is Important Even in Today’s Climate

National Business Summit: Rising Sea Levels, Extreme Storms and Aging Infrastructure

New York, NY

May 7, 2014

Jeff WilliamsSr. Mgr, Climate Consulting

We Understand StormsEntergy

Wholesale Commodities

Hurricane Rita Hurricane Gustav

Hurricane Katrina Hurricane Sandy

Utility

Hurricane IsaacHurricane Ike

Values we share together

The Business Case

Enhancing Prosperity, Safety and Quality of Life

Concerns about how to deal with today’s conditions

Preserving heritage and restoring environment for future generations

Emergency evacuation of crews and equipment from Grand Isle & Port

Fourchon in front of storm surge from Hurricane Ike .

Meaningful action takes the worst outcomes off the table

We get to choose between mitigation, adaptation and suffering

Odds of Extreme Weather are changing: 10 times as many record highs as record lows

Models show Ratio could be 20:1 by mid century and 50:1 by 2100

“Record high temperatures far outpace record low temperatures”, G. Meehl, NCAR 11/09

Gulf Coast Adaptation Study October 2010

Hazards Evaluated

$2 Trillion in assets at risk today Producing $634 billion Annual GDP

Expect a Katrina like storm twice every lifetime

Climate change is expected to increase losses over time

12

Residential/ commercial

1 Building codes

Oil and gas

6 Floating production systems

7 Replacing semi-subs with drill ships

8 Levees for refineries, petrochemical plants

Infra-structure/ Environ-mental

3 Wetlands restoration1

2 Beach nourishment

4 Levee systems1

Electric utility

9 Resilience of electric utility systems

0.4

0.1

1.4

7.5

1.3

0.7

0.5

1.1

1.7

0.3

Loss averted, 2030$ Billions

And there are some key near term actions to protect our region – that are cost effective, and will help our economy and our environment

1 Included despite high C/B ratios due to strong co-benefits, risk aversion2 Total capital investment, non-discounted, across 20 years

5 Improved standards offshore platforms

Total

C/B ratiox

0.7

1.3

1.6

0.7

0.5

3.3

0.7

3.8

0.9

CapEx required2

$ Billions

Public funding

Private funding

18

25

1

12

12144 76

15

5

11

18

16

There is residual risk that must be addressed, a problem that maybe exacerbated by climate change

Swiss re; Wharton Project on Managing and Finance; Sigma database; team analysis

11 BRRC Forums provided a voice for the Gulf Coast region

Recommendations

• Resolve conflicting Federal Policy

• Deploy “Multiple Lines of Defense”

• Allow innovation and enterprise to flourish

• Revitalize regional strength and pride

• Sustain action based recommendations

Technical Conferences showed highly cost effective resilience measures

exist but require proactive investments

– Determine how best to prioritize the assets that need storm hardening.

– Ensure good communication and reliable information is available during storms.

– Continue to educate about the importance of resilience; our communities and businesses need to understand.

– Use our political influence to help fight for policies and resources to improve resilience or partner with others on areas of mutual interest. We need to speak with one voice – work as a team to determine what to do next.

– Push for public and private financing and investment into resilient infrastructure.

– Utilities need to invest in resilience and prioritize issues that require proactivity.

– Work with customers to determine what infrastructure needs to be up and running first after storms (e.g. hospitals etc.).

Port Fourchon Today

Port Fourchon in 2030 with Storm Surge & Sea Level Rise

Resilience or Suffering: Our Choice to Make