August 3 APSC Order Maps Out Path
LITTLE ROCK, Ark. – Entergy Arkansas,
Inc. remains focused on completing the steps to join the Midwest Independent
Transmission System Operator, or MISO, after the Arkansas Public Service
Commission issued an order Friday that laid out conditions for Entergy Arkansas
to join the regional transmission organization.
“Friday’s order defined several
conditions that Entergy Arkansas and MISO must meet before the Commission will
authorize the integration,” said Hugh McDonald, president and chief executive
officer of Entergy Arkansas, Inc. “Most of these conditions Entergy Arkansas and
MISO have already agreed to as reasonable and appropriate. However, it
introduced some conditions that are of concern to the company.
“Two things are clear,” McDonald
emphasized. “One, we continue to be completely committed to our proposal to join
MISO by December 2013—the arrangement that, per our analysis and that of
independent consultants, best ensures the long-term reliability and
affordability of electricity for our customers. And two, we’re committed to
working with the Commission to attempt to address their concerns. There’s
certainly more work to be done, and while we’re still defining just what the
next steps are, we are squarely focused on securing the benefits of MISO
membership for our customers.”
Driving the issue and Entergy
Arkansas’ sense of urgency is the decision announced more than six years ago to
leave the contract governing power coordination with the other Entergy utilities
in December 2013. By that time, Entergy Arkansas must have in place alternate
processes required to operate its electric system.
Extensive analysis completed by the
Entergy utilities and confirmed by outside consultants has shown that MISO is
the best available option for the company and its customers. In filed testimony
and hearings at the APSC, nearly every party to the matter supported or did not
oppose Entergy Arkansas’ move to MISO.
Moreover, interveners in the case
included large industrial groups, the Arkansas Attorney General’s office,
municipalities, the Arkansas electric cooperatives and independent power
producers either supported or did not opposed Entergy Arkansas’ proposal to join
MISO. Collectively, Entergy Arkansas and the utilities in this group serve more
than 80 percent of Arkansas’ electricity consumers.
The analysis projected that joining
MISO would save Arkansas electric customers $263 million on a net present value
basis based on a study period of 2013 to 2022, as well as improve reliability
and provide for more competitive and diverse generation resources.
The projected savings are largely
attributable to MISO’s organized power markets, which allow for a more efficient
commitment and dispatch of generating plants, to economies of scale offered by
an RTO of MISO’s size, and to MISO’s transmission cost allocation methodology
that more equitably allocates costs to those receiving the benefits.
“We are going to get this right and
make it work,” McDonald added. “We have worked hard to reach this point and
demonstrate that membership in MISO is in the best interests of our customers,
our communities and our state. The procedural steps and process still have to be
worked out, but we are going to do the right thing for our customers.”
Entergy Arkansas, Inc. 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 utilities own and operate power plants with approximately 30,000
megawatts of electric generating capacity, including more than 10,000 megawatts
of nuclear power, making it one of the nation’s leading nuclear generators.
Entergy utilities deliver electricity to 2.8 million utility customers in
Arkansas, Louisiana, Mississippi and Texas. Entergy Corporation has annual
revenues of more than $11 billion and approximately 15,000 employees.
this news release, and from time to time, Entergy Arkansas, Inc. 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 Arkansas 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 Corporation’s Form 10-K for the year ended
December 31, 2011; (ii) Entergy Corporation’s Form 10-Q for the quarter ended
March 31, 2012; and (iii) Entergy Corporation’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; (e) legislative and
regulatory actions and risks and uncertainties associated with claims or
litigation by or against Entergy Corporation and its subsidiaries; (f)
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 subsequent securities filings, and (g) risks inherent in the
proposed spin-off and subsequent merger of Entergy Corporation’s electric
transmission business with a subsidiary of ITC Holdings Corp. Entergy
Corporation cannot provide any assurances that the spin-off and merger
transaction will be completed and cannot give any assurance as to the terms on
which such transaction will be consummated. The spin-off and merger transaction
is subject to certain conditions precedent, including regulatory approvals and
approval by ITC Holdings Corp. shareholders.