Entergy

Entergy Enhances Banking Relationships & Operating Cash Flow

Entergy is a Fortune 500 company that powers life for 3 million customers through their operating companies in Arkansas, Louisiana, Mississippi and Texas. Following a recommendation from a utility peer, Entergy decided to enlist Redbridge for a cash management review with its existing banking partners.

Challenge

Entergy took an active role in evaluating its existing banking relationships, aiming to confirm each banking partner was gaining benefits from services rendered, Entergy’s utilization of services were as efficient as possible, and the company had a fee structure established that would serve as a basis for the next three years.

Solution

Entergy had successful banking relationships with its current partners who demonstrated proactive involvement, trust, and open communication. It was beneficial for Entergy to have bankers who understood the company’s business model and needs. This engagement not only included an evaluation of fee structure but offered the banking partners an opportunity to collaborate with Entergy on new innovative treasury services and suggestions to maintain efficiency within cash management.

Entergy then chose to initiate a Request for Proposal (RFP) process to ensure that each participating bank had a fair opportunity to bid on the business in a manner that was advantageous to the bank. Throughout this engagement, Entergy observed the banks’ interest in specific aspects of cash management services.

With Redbridge’s detailed analytical presentation of data, Entergy was able to make a direct “apples to apples” comparison among the bids submitted in the Request for Proposal (RFP). It also provided the banks with an opportunity to present new and innovative services that could benefit Entergy.

In addition to mediating the RFP, Redbridge also examined Entergy’s account structure to identify any services that were inefficient and potentially driven by the client’s own practices, recommending reductions where possible to enhance cost efficiency. Finally, Redbridge assessed Entergy’s strategy for investing money to identify opportunities that could improve its existing structure, aiming to achieve maximized and optimal results.

Results

Bank Proposals Evaluated Through Direct Quantitative and Qualitative Comparison

In the direct comparison of the proposals, Entergy was able to swiftly evaluate both the quantitative and qualitative aspects, which helped in clearly identifying the least disruptive solution.

Fixed-Term Pricing Structure Established for Future Cost Projection

Pricing was established on a fixed term, assisting in the projection of future costs.

Structured Weekly Review Calls Implemented to Support Ongoing Analysis

Redbridge organized weekly calls with Entergy to ensure that any concerns and questions were promptly addressed, providing analysis and professional recommendations.

Investment Strategy Evaluated to Enhance Residual Operating Cash Flow

Redbridge completed an evaluation of Entergy’s money investment strategy and was able to present options to further enhance the returns on the residual operating cash flow available.