Analysis shows Midwest Independent System Operator will provide potential
customer savings of more than $1 billion over a ten-year period
New Orleans, La. – Entergy Corporation (NYSE: ETR) announced today that,
based on comprehensive review and analysis, it has concluded that joining the
Midwest Independent System Operator (MISO) will provide meaningful long-term
benefits for the customers of the Entergy operating companies. The Entergy
operating companies will provide detailed analysis supporting these conclusions
to their retail regulators in May and anticipate submitting formal proposals to
those regulators later this year, with a target implementation date for joining
MISO of December 2013.
MISO is an independent, nonprofit, Regional Transmission Organization that
supports the reliable delivery of electricity in 13 U.S. states. Regional
Transmission Organizations are independent entities that manage and operate the
transmission system within a specific geographic area. With Entergy as a member,
the footprint of the organization would extend from the Canadian Border to the
Gulf of Mexico.
Over the past decade, Entergy has carefully evaluated a number of
alternatives regarding the best management structure for its transmission
system. Most recently, Entergy has worked with the Entergy Regional State
Committee (E-RSC), a committee formed by the retail regulators of the Entergy
Operating Companies, to evaluate joining an RTO (either the Southwest Power Pool
(SPP) or MISO) or enhancing the current Independent Coordinator of Transmission
(ICT); an arrangement where SPP serves as the ICT.
With leadership and input provided by the E-RSC, as well as the Federal
Energy Regulatory Commission, the joint effort was intended to evaluate
alternatives that not only would achieve savings to the customer, but also
provides greater transparency in the marketplace and independence in the
decision making process. Entergy received and appreciates the substantial
support and efforts of SPP as the ICT and as facilitator for the E-RSC effort
and it looks forward to a continued close working relationship with SPP in the
One of the advantages of joining MISO is becoming a part of its already
established “Day 2” market, or a centralized market-driven dispatch process.
This process creates a large wholesale market for the buying and selling of
electricity, creating a substantial portion of savings for the customers. The
study done by Entergy included independent analysis of the savings and actual
proposals from SPP and MISO on how certain costs would be shared. The study
concluded that joining MISO could save customers more than $1 billion in power
production costs for the 2013 to 2022 timeframe. While both MISO and SPP were
assumed to have a Day 2 market, only MISO currently has an operating market
“The analysis clearly shows there are compelling benefits to joining a
regional transmission organization with substantial scale and a Day 2 market,”
said J. Wayne Leonard, Entergy’s chairman and chief executive officer. He added
“An organized market design based upon centralized auction markets creates
greater efficiencies than one that relies upon bilateral trading, particularly
in electricity markets where some congestion is always present. We look forward
to discussing in detail the benefits of joining MISO with regulators, their
staffs and other stakeholders in the months ahead. As the analysis showed,
MISO’s substantial scale and established market made it the clear choice for
Regulatory Filings and Next Steps
On or before May 12, the Entergy operating companies will submit a report to
their retail regulators containing the detailed information and analysis that
forms the basis for their recommendation. After this initial submittal, the
Entergy operating companies anticipate submitting formal proposals with their
respective retail regulators later this year, with a target implementation date
for joining MISO of December 2013.
“Continued discussion with regulators and other stakeholders regarding this
complex and important matter is a key part of the process,” said Leonard. “The
operating companies will conduct technical conferences, meetings, and other
informational activities to outline why our comprehensive analysis led us to
conclude that joining MISO is in the best interests of our customers.”
The Entergy operating companies are Entergy Arkansas, Inc., Entergy Gulf
States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc.,
Entergy New Orleans, Inc., and Entergy Texas, Inc.
Entergy Corporation is an integrated energy company engaged primarily in
electric power production and retail distribution operations. Entergy owns and
operates power plants with approximately 30,000 megawatts of electric generating
capacity and it is the second-largest nuclear generator in the United States.
Entergy delivers electricity to 2.7 million utility customers in Arkansas,
Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11
billion and approximately 15,000 employees.
For more information, Entergy’s online address is
In this news release, and from time to time, Entergy Corporation makes
certain “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Except to the extent required by the
federal securities laws, Entergy undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties.
There are factors that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements, including (a)
those factors discussed in: (i) Entergy’s Form 10-K for the year ended December
31, 2010 and (ii) Entergy’s other reports and filings made under the Securities
Exchange Act of 1934, (b) uncertainties associated with rate proceedings,
formula rate plans and other cost recovery mechanisms, (c) uncertainties
associated with efforts to remediate the effects of major storms and recover
related restoration costs, (d) nuclear plant relicensing, operating and
regulatory risks, including any changes resulting from the nuclear crisis in
Japan following its catastrophic earthquake and tsunami, and (e) legislative and
regulatory actions, and conditions in commodity and capital markets during the
periods covered by the forward-looking statements, in addition to other factors
described elsewhere in this release and in subsequent securities filings.