fixed fuel factor combines with fuel refund for cost reduction
Beaumont, Texas – Customers of
Entergy Texas, Inc. will be paying much less for electricity beginning March 1.
The company’s recently announced fuel
refund for the months of March, April and May will now combine with a
dramatically lower fixed fuel factor, driving down the average 1,000
kilowatt-hour residential springtime bill to $81.28, a drop of almost $33.
Even after the fuel refund ends in
May, the lower fuel factor will remain in place through August, offering
customers a respite from the high bills typically associated with the hot
Southeast Texas summer.
“The amount we pay for fuel to
generate electricity is continuing to decline,” explained Joe Domino, president
and chief executive officer, Entergy Texas, Inc. “This means we can pass these
savings along to our customers during a time of year when electricity bills are
normally on their way up.”
Earlier this month, customers learned
that they would share in a $67 million refund that would knock $21.70 per month
off the average 1,000 kilowatt-hour bill during the months of March, April and
That was before a new fixed fuel
factor was decided. The factor is set twice a year and remains on bills for six
months at a time. The new factor, based on market prices of fuel for the first
10 days of February, has been set at $30.73, a decrease of $10.94 from the last
time the factor was set in August 2011. The new lower price will be reflected on
bills in March and will remain in place until September.
During the spring months, the refund
and the new, lower fixed fuel factor combine to lower bills by a total of
$32.64. When the refund ends in May, the average residential bill will total
$102.98 through August.
Entergy Texas, Inc. delivers
electricity to more than 400,000 customers in 27 counties. It is a subsidiary of
Entergy Corporation. Entergy 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 2.8 million utility customers in
Arkansas, Louisiana, Mississippi and Texas.