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
"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
Entergy's online address is