Entergy Corporation : Entergy Texas Seeks Approval of Plan to Improve Service and Increase Investment

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 three years.

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 rate increases.

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.

-30-
entergytexas.com
Twitter: @EntergyTX

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.

Partner Area