Entergy Corporation : Entergy Texas Seeks Approval of Plan to Improve Service and Increase Investment
11/28/2011| 02:29pm US/Eastern
Proposal Would Mean Adequate Power, Better Efficiency
Beaumont, Texas -Entergy Texas, Inc. today filed a plan with
the Public Utility Commission of Texas that would allow it to
keep up with the growth of its Texas service territory and
ensure a sufficient supply of reliable power for customers.
As filed, the plan calls for an additional $112 million in
annual revenue supporting increased capital investment in the
company's electricity infrastructure from 2009-2011.
From July 2007 through June 2009,Entergy Texas invested
$261.8 million to complete transmission and distribution
capital projects. The company plans to invest an additional
$664 million in its Texas service territory over the next
In an attempt to lower bills in the future, Entergy is
proposing a remedy to costly rate cases by asking that all
purchased capacity costs-including both purchased capacity
costs already in base rates and new purchased capacity
costs-be recovered through a rider rather than through base
Each rate case costs customers about $12.5 million. Fewer
rate cases will save customers money. A rider will not reduce
Public Utility Commission oversight. The commission will
continue to regulate the company.
Purchased power is an important part of how the electric
market operates today as the result of the emergence of a
wholesale market. In the past, electric utilities powered
America by making electricity at their own generating plants,
then sending it out on their own transmission and
distribution lines to homes and businesses in the clearly
defined areas they served.
That model has changed dramatically since the mid-1990s with
the emergence of a wholesale power industry that often makes
it possible for utilities to provide electricity at a lower
cost by buying it from independent power producers.
Entergy Texas is taking advantage of that opportunity by
purchasing power on the wholesale market and also by entering
contracts that ensure reliable power into the future. Three
recent contracts include the following:
Calpine- Carville, 242.5 megawatts
Conoco Phillips, 100 megawatts
Sam Rayburn Dam Electric Cooperative, 225 megawatts
Currently, purchased power capacity costs are recovered
through base rate increases.
This makes it necessary to file rate cases more frequently.
If approved as filed, the average monthly 1,000 kilowatt-hour
residential bill would increase by $14.37.
Entergy Texas, Inc. provides electricity to more than 400,000
customers in 27 counties.
It is a subsidiary of Entergy Corporation. Entergy is an
integrated energy company engaged primarily in electric power
production and retail distribution operations. Entergy owns
and operates power plans 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 and Texas.
In this news release, and from time to time, Entergy Texas,
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 Texas 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, 2010; (ii) Entergy Corporation's
Form 10-Q for the quarters ended March 31, 2011, June 30,
2011 and September 30, 2011; 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; and (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 presentation and in subsequent securities filings.