Entergy Louisiana and Entergy Gulf States Louisiana 2013 Rate Cases
As part of a commitment to meet your power needs today and into the
future, Entergy Louisiana and Entergy Gulf States Louisiana have asked the
Louisiana Public Service Commission for a change in our electric rates,
including an increase in residential rates that, if approved, would likely
go into effect in February 2014.
Click here to see
the full fact sheet.
Click here for FAQs.
Why are Entergy Louisiana and Entergy Gulf States Louisiana seeking rate
increases?
Since 2004 the companies' base rates have, under an order of the
Louisiana Public Service Commission, been set using a Formula Rate Plan
approved by the LPSC. The companies' Formula Rate Plans expired with their
filings in 2012, and the LPSC has required that each company file a rate
case.
The companies have made capital investments in the electrical system to
cut fuel costs, improve reliability and meet statewide power demand with
clean, efficient and affordable electricity. These investments are reflected
in the rate case.
Part of the rate increase also will pay for repairs and restoration of
the electrical infrastructure in case of a future emergency.
Most importantly, the demands being placed on the electric grid today are
vastly different and greater than those for which it was designed and built.
The next two decades will require extraordinary investments in the U.S.
electric infrastructure. To ensure that we are able maintain healthy
companies that can continue to affordably provide safe, clean, reliable
power to our customers into the future, Entergy is pursuing smart solutions
today: joining the Midwest Independent Transmission System Operator, Inc.
and the proposed spin-off and merger of Entergy's transmission business with
ITC Holdings Corp. Making these critical changes will require some
adjustments to the way Entergy Louisiana and Entergy Gulf States Louisiana
recover costs.
Why does Entergy need to make these business model changes, and how will
they benefit customers?
Louisiana's population and economic opportunities are growing year by
year and are driven by dependable, affordable electric power. Electricity
powers the necessities and conveniences of our customers' lives - everything
from televisions to smart phones, air conditioners to cooktops, grocery
stores to manufacturing plants. But as demand for power grows, weather,
maintenance schedules, generating costs and other factors create a complex
daily interplay between electricity supply and demand. To best manage that
supply and demand, Entergy has received approval from the LPSC to join the
Midwest Independent Transmission System Operator, Inc. Better known as MISO,
the regional transmission organization has a footprint from Canada to the
Gulf of Mexico, and will drive efficiency and reliability and provide a
projected $430 million to $575 million in savings for Louisiana customers.
To build on MISO membership and provide the benefits of expertise,
financial strength and enhanced reliability, Entergy also is seeking to spin
off then merge its transmission business with ITC Holdings Corp., a leading
independent, transmission-only company. Upgrading and modernizing the U.S.
electric grid will require significant capital expenditures - industry
infrastructure investment, driven by replacement of existing assets,
environmental regulations and other compliance requirements, that could
range from $1.5 trillion to $2 trillion between 2012 and 2030. The capital
investments required over the next decade will drive costs higher for
customers, but Entergy is pursuing the ITC transaction to create a separate,
independent transmission company that will deliver focused expertise,
enhance reliability and enable greater financial strength and flexibility to
make the necessary investments into the future as affordably as possible.
Entergy Louisiana - Algiers 2013 Rate Case
To align electric rates with current costs and investment demands and as
part of a commitment to meet your power needs today and into the future,
Entergy Louisiana has asked the City Council of New Orleans for a change in
Algiers customers' electric rates, including an increase in residential
rates that, if approved, would likely go into effect in April 2014.
Click here to see the full fact sheet.
Click here for FAQs.
Why is Entergy Louisiana filing this rate case now and seeking a rate
increase for Algiers customers?
Twelve years have passed since Entergy Louisiana requested a rate change
for Algiers customers: a $913,000 rate decrease authorized by the New
Orleans City Council. Since then, Entergy Louisiana has undertaken important
initiatives and made significant investments in the electrical system to
improve customer satisfaction, enhance reliability, reduce production costs
and make massive storm system restoration efforts after catastrophic
hurricanes - all initiatives that have benefited Algiers customers, but
costs of which have not been reflected in their rates.
The City Code of New Orleans requires utilities to file a fully allocated
cost-of-service study in any rate change request. If a rate case with a
class cost-of-service study had previously been filed for Entergy Louisiana
Algiers operations alone, the 22,000 Algiers customers served by Entergy
Louisiana would have had had to bear all of the substantial preparation
costs associated with that study and rate case. When Entergy Louisiana's
Formula Rate Plan that had been in effect in prior years expired with the
company's 2012 filings, the Louisiana Public Service Commission - which
regulates the company's utility operations outside of Orleans Parish -
required Entergy Louisiana to file a rate case that included a class
cost-of-service study. Entergy Louisiana made that rate case filing with the
LPSC in February 2013; making a rate case application with a class
cost-of-service study for Entergy Louisiana - Algiers to the New Orleans
City Council in conjunction with the February rate case filing with the LPSC
takes advantage of efficiencies and substantial cost savings for Algiers
customers.
As important, the demands being placed on the electric system - both
generation resources and the grid - today are vastly different and greater
than those for which it was designed and built. The next two decades will
require extraordinary investments in the electric infrastructure across the
nation, as well as here in Louisiana and, specifically, in the Amite South
planning region of the Entergy electric system. Ensuring that Entergy
Louisiana can provide safe, clean, reliable and economic power to customers
into the future requires changes to the base rate structure today. That's
why Entergy is pursuing smart solutions now: joining the Midwest Independent
Transmission System Operator, Inc. (MISO), and the proposed spin-off and
merger of Entergy's transmission business with ITC Holdings Corp. Making
these critical changes will require some adjustments to the way Entergy
Louisiana recovers costs through rates.
Entergy Louisiana recognizes that its rate request translates into
significant, but necessary and reasonable, increases in electric bills to
our Algiers customers. To help mitigate the burden of a one-time increase to
customers, we are proposing to implement a three-year phase-in plan or "step
approach" for rate changes. Under each scenario, the first step would be
implemented at the conclusion of the rate case proceeding, which is
currently scheduled for April 1, 2014. The second step of the increase would
be effective October 14, 2014, and the third step would be effective October
1, 2015.
Who does this Entergy Louisiana - Algiers rate case and proposed rate
increase affect?
This proposed rate change only affects Entergy Louisiana customers who
are residents, businesses or government entities receiving Entergy electric
service in Algiers, on the west bank of Orleans Parish. Customers outside of
Orleans Parish who are served by Entergy Louisiana, and customers who live
on the east bank of Orleans Parish and are served by Entergy New Orleans,
are not affected by this rate case or proposed rate increase. Also, this is
an electric service rate case, so it does not address or affect gas service
rates for customers in any Entergy gas service areas, including Algiers,
where Entergy New Orleans provides natural gas.
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