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December 16, 2013
For Immediate Release
Contact:
Molly Jahncke
Entergy Services, Inc.
mjahnck@entergy.com
Settlements of Electric Base Rate Cases Approved for Entergy’s Louisiana Utilities

Settlements provide stable rates to customers; Entergy can support growth while carefully managing costs

BATON ROUGE, La. – With the Louisiana Public Service Commission’s approval of settlements in the electric base rate cases of Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC, customers are poised to benefit from stable, economic electric rates. At the same time, the companies have the opportunity to grow their businesses while carefully managing costs and contributing to the state’s economic development boom. 

 Both the Entergy Gulf States Louisiana and Entergy Louisiana electric base rate case settlements extend the companies’ previous formula rate plans for three years beyond the initial implementation of rates in late 2014, and provide customers with certainty about how future rate levels will be determined until at least 2018. They also give the companies the incentive mechanisms to closely manage costs while earning a return that supports access to capital on reasonable terms for key investments in load and business growth necessary to serve Louisiana power needs now and into the future.

“These actions of our regulators will support continued investment and delivery of reliable service for customers and financial strength of our companies based upon our performance,” said Phillip R. May, president and chief executive officer of Entergy Gulf States Louisiana and Entergy Louisiana. “Even with these decisions, customer rates are expected to remain among the lowest in the U.S., not counting any additional benefits once we join the Midcontinent Independent Transmission Operator, Inc. regional transmission organization later this week. All these factors benefit our communities and aid in the industrial renaissance in the making in Louisiana and the Gulf region.”

The Entergy Louisiana base rate case settlement permits the company to implement a modest $10 million increase in base rates for cost of service, which will be effective December 2014. The settlement also ensures that the total increase in Entergy Louisiana base rates over that full three-year term of the FRP is capped at $30 million, which includes the $10 million base rate increase, relative to current levels.

The $10 million increase means that bills for a typical Entergy Louisiana residential customer using 1,000 kilowatt-hours of power per month will increase by just 47 cents. Under the Entergy Gulf States Louisiana base rate case settlement terms, customers’ electric cost of service base rate won’t increase in 2014 or 2015.

“Our electricity rates are determined by a number of factors, including the base rate and all that goes into it, and they continually fluctuate,” said May. “But they also are carefully and fairly regulated, and we work very hard with regulators and stakeholders to keep rates reasonable,” said May. “Even with the approved settlement for Entergy Louisiana, our rates will remain among the lowest in the state, the region and the nation.”     

In 2012, the Entergy Gulf States Louisiana and Entergy Louisiana average residential electric rate was 8 cents per kWh, below the southeast regional comparable average of 10 cents per kWh and the U.S. average of 12 cents per kWh, according to the U.S. Department of Energy.[1]

“And beyond the benefits provided for by the terms of the companies’ electric base rate case settlements, Entergy’s integration into MISO later this week will provide Louisiana customers with a projected $430 million to $575 million in production costs savings over the first decade of operations, as well as improved reliability, diversified supply and access to more competitive generation resources,” said May. “All this means that we are excited to be well poised to continue to offer some of the lowest electric rates in the nation, prudently manage our costs and make the considerable investments required to continue to meet customers’ needs while helping drive Louisiana’s economic renaissance.”

Entergy''s Louisiana utility companies provide electric service to more than one million customers through the operating companies Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. and natural gas service to more than 90,000 customers in the greater Baton Rouge area through Entergy Gulf States Louisiana. With operations in southern, central and northeastern Louisiana, the companies are subsidiaries of Entergy Corporation.

Entergy, which celebrates its 100th anniversary in 2013, is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with 30,000 megawatts of electric generating capacity, including more than approximately 10,000 megawatts of nuclear power, making it one of the nation’s leading nuclear generators. With annual revenues of more than $10 billion and approximately 15,000 employees, Entergy delivers electricity to 2.8 million utility customers in Louisiana, Arkansas, Mississippi and Texas.

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In this news release, and from time to time, Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. 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 and affiliates 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 this news release and in: (i) Entergy Corporation’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and (ii) 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 and its subsidiaries; and (f) economic conditions and 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.

 
[1] Source EIA Form 826: Numbers represent reported revenue and exclude non-revenue items such as securitization charges.