A known proponent of reducing emissions, Denault said Entergy is now building more sustainable energy plants. The money once spent on coal is going towards natural gas, nuclear, and, over time, will shift to renewable sources of energy as those costs come down, he said.

To Denault, Entergy’s transition to becoming more of a pure-play energy provider means a more stable, predictable growth trajectory, as well as reliable earnings and dividends for shareholders.

“We’ve got a great growth opportunity in that utility, so it’s really a capital allocation question as much as anything else,” Denault told Cramer. “Where are you going to put your money? Are you going to put it in those assets that are a commodity play that are losing money, or are you going to put it into the tremendous growth that we have in the utility?”

And as the company solidifies its transition, with Tropical Storm Cindy marking a test of resilience for 35,000 of Entergy’s clients who had outages during the storm, Denault sees his residential customers becoming more responsible with their energy sources, too.

“[In] the residential sector, we’ve seen flat to declining growth,” he said, attributing the lag to homes in Entergy’s areas of operation becoming more energy-efficient. “That is what’s playing across the country as it relates to the residential sector.”

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