Companies Urge Commission to Protect Electric Customers from Unnecessary Rate
Increases
White Plains, NY— Entergy
Corporation’s (NYSE: ETR) New York subsidiaries today filed comments with the
New York State Public Service Commission (“PSC”) regarding a proposed
reliability contingency plan (“RCP”) meant to address the premature retirement
of the Indian Point Energy Center. The RCP, filed jointly by Con Edison and the
New York Power Authority at the direction of the New York PSC, proposes to
immediately begin billing New York electric customers at least $800 million for
a series of electric transmission projects, along with another energy efficiency
program, to address the potential impacts on the electric grid in the event the
Nuclear Regulatory Commission (“NRC”) ultimately declines to issue renewed
licenses for Indian Point. According to the RCP, customers throughout New York
State would be billed for the projects – including those who live upstate and on
Long Island.
In their comments, the Entergy
companies urged the New York PSC to require the utilities to submit more
information prior to taking any actions that will raise customers’ electric
rates. “The RCP fails to acknowledge the substantial likelihood that Indian
Point will continue to operate, it lacks sufficient information for a meaningful
review of the proposed projects or other alternatives, and it fails to
demonstrate that – with a price tag of at least $800 million – it is the most
cost-effective solution for New York electric customers,” said Mike Twomey, vice
president of external affairs for Entergy Wholesale Commodities.
According to the most recently
published data from the U.S. Energy Information Administration for 2012
(covering the period from Jan. 1, 2012, through Nov. 30, 2012), New York
residential customers paid the highest electric rates in the continental United
States – and nearly 50 percent higher than the national average. “Rather than
asking New York customers to pay hundreds of millions of dollars for a
contingency plan that might not be needed, New York could support the license
renewal effort for Indian Point now pending at the NRC to help ensure that this
safe, clean, and reliable resource remains part of New York’s energy portfolio,"
Twomey said.
On the issue of whether the RCP
projects could be replacements for Indian Point, Twomey said: “The projects have
been labeled as alternatives to Indian Point, but they are not replacements for
the facility -- they would not replace the substantial economic and air quality
benefits that Indian Point provides. At best, these projects might alleviate
some of the reliability consequences of losing Indian Point, but only at a
significant cost. Moreover, because the RCP does not include adequate
information, it is impossible for the New York PSC to determine the degree to
which these projects would even address potential reliability consequences.”
Since purchasing Indian Point more
than 10 years ago, Entergy has focused on improving and maintaining the
facility, including making investments of more than $1 billion to enhance the
reliability, security, and safety of the facility. Entergy filed a joint license
renewal application with the NRC in 2007 and it continues to actively pursue the
matter.
Entergy Corporation, which celebrates
its 100th birthday this year, 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,
including more than 10,000 megawatts of nuclear power, making it one of the
nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million
utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has
annual revenues of more than $10 billion and approximately 15,000 employees.
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Additional investor information can be accessed online at
www.entergy.com/investor_relations.
