Utility Marks Milestone Toward Goal of MISO Integration

LITTLE ROCK, Ark. – Entergy Arkansas, Inc's proposed move to the Midwest Independent System Transmission Operator, or MISO took a significant step forward this week.

The utility has reached an agreement with its Arkansas co-owners in coal generating plants regarding how the plants will operate after Entergy Arkansas' proposed integration into MISO. The Arkansas Electric Cooperative Corporation along with the cities of Jonesboro, Conway, Osceola, and West Memphis share ownership of the White Bluff Plant near Redfield and the Independence Plant near Batesville.  Collectively, Entergy Arkansas, AECC, and the other Arkansas co-owners represent eighty percent of all retail electricity customers in the state.

"We have spent a lot of time over the last few months talking with stakeholders about the potential impact of this decision on their customers as well as on our own. Revisiting our existing agreements with the co-owners is a key step in the planning process," said Hugh McDonald, president and chief executive officer of Entergy Arkansas, Inc. "This is a paradigm shift in the way we provide power. Naturally, we have fielded many questions and collected input, and the results have been very positive."

The Arkansas co-owners filed testimony with the Arkansas Public Service Commission discussing the agreement and the accompanying benefits. The agreement would extend the benefits of participation in MISO including its  "Day Two" market to all the co-owner utilities if the APSC approves Entergy Arkansas' proposal to join MISO.

"This is a good contract for our customers," said Richard Arnold, chief executive officer for Conway Corporation. "It allows us to maximize the value of these generating assets. Participating in a 'Day Two' market enables affords us an opportunity to realize meaningful fuel and purchased power cost savings for Conway customers as well as those of Entergy Arkansas."

Entergy Arkansas proposed integrating with MISO last May after extensive analysis showed that joining MISO is the best option for its customers after the company exits the System Agreement. If approved, the initiative will result in up to $263 million in net savings for Entergy Arkansas customers. Entergy Arkansas will exit the System Agreement in December 2013.

"This is a mutually beneficial arrangement that ensures we will fully utilize the capacity we own in the coal plants and have access to lower cost energy in the MISO regional market," said Ron Bowen, manager of Jonesboro's City Water and Light utility. "It's a win-win situation."

 Entergy Arkansas provides electricity to more than 692,000 customers in 63 counties. It is a subsidiary of Entergy Corporation. 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.