Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Entergy Corporation    ETR

News SummaryMost relevantAll newsSector newsTweets

Entergy Corporation : Regulators In Two U.S. States Reject Lower Payments To Solar Homes

share with twitter share with LinkedIn share with facebook
share via e-mail
07/08/2013 | 09:52pm CEST

--Changes to 'net metering' policies rejected in Louisiana and Idaho

--Decisions suggest uphill battle for utilities looking to alter policies

--Idaho regulators said the changes could 'discourage investment'

By Ryan Tracy

Regulators in two states recently decided against lowering compensation for solar-system owners, results that suggest electric utilities may have difficulty reducing payments to a fast-growing sector that is cutting into their revenue.

The Idaho Public Utilities Commission last week rejected a proposal to raise monthly fees paid by homeowners and small businesses that install solar panels, denying a petition from Idaho Power Co., which serves Boise and other parts of southern Idaho.

That followed a June 26 decision by the Louisiana Public Service Commission to maintain payments that utilities must make to solar system owners. The commission voted 3-2 against a proposal to lower the payments that had been supported by Entergy Corp.

The two cases were part of a broader debate that has arisen with the growth of rooftop solar power and other "distributed" sources of electricity that aren't part of the traditional power grid. Utilities in Arizona and California -- two of the largest U.S. solar markets -- are also mulling proposals to alter payments to solar-system owners.

In Louisiana and Idaho, utilities purchase power from customers who install renewable-energy systems, such as rooftop solar arrays, and connect to the local electric grid. Under a typical payment arrangement, called "net metering," solar-equipped homeowners often have cheaper monthly electric bills than their neighbors because the solar homes offset their utility charges with energy produced from the sun.

When solar-system owners buy less electricity from the utility, the lost sales can cut into utility profits. A recent report distributed by the Edison Electric Institute, the main Washington, D.C., trade group for large utilities, said the growth of small-scale solar systems represents the "largest near-term threat" to the industry and recommended that utilities work to change net-metering policies like the ones under debate in Idaho and Louisiana.

Entergy and Idaho Power Co. told regulators that under current state rules, solar-powered homes aren't paying their fair share of costs like maintaining power lines and responding to outages. Solar advocates disagree, saying that solar rooftops provide benefits like reducing the need to build new power plants.

In an order issued July 3, the Idaho Public Utilities Commission said it was concerned that Idaho Power's proposal "will discourage investment in distributed generation," a category that includes rooftop solar. The regulators said solar customers may not be paying their fair share, but "more work needs to be done to establish the correct customer charge."

An Idaho Power spokeswoman said in a statement, "we appreciate that the commission acknowledged this is a valid issue" and "we will move forward to work further with our customers and other stakeholders on this matter."

Representatives of the Entergy unit involved in the Louisiana case didn't immediately respond to requests for comment Monday.

   Write to Ryan Tracy at [email protected] 

Corrections & Amplifications

This item was corrected at 18:57 ET (22:57 GMT) to reflect that Idaho, not Iowa, is one of the states under which solar payment policies are under debate. This was misidentified in the original story.

share with twitter share with LinkedIn share with facebook
share via e-mail
01:22p ENTERGY : Approval and Promulgation of Implementation Plans; Louisiana; Regional..
09/25 ENTERGY : Astorino's Indian Point Lawsuits Will Be Heard In White Plains
09/23 ENTERGY : Energy Smart Program Ranked First in Savings Among Low-Income Particip..
09/23 ENTERGY : PLYMOUTH - It was just a preliminary "interim" report
09/23 ENTERGY : Economic Master Plan Stepping up to the plate RKG says Plymouth should..
09/22 'CARBON CONSUMPTION IS GOING TO KILL : Council hopefuls share views on New Orlea..
09/22 ENTERGY : Pilgrim power reduced to 80 percent because of water temperature
09/21 ENTERGY : Energy Smart Program Ranked First in Savings among Low-Income Particip..
09/21 ENTERGY : Chairman, CEO to Speak at Wolfe Conference
09/21 ENTERGY : S&WB's Turbine 6 went down, causing power issue that led to boil water..
More news
News from SeekingAlpha
09/07 Entergy (ETR) Presents At Barclays CEO Energy-Power Conference - Slideshow
08/28 280K Texas customers still without power as utilities struggle with rains
08/16 MORGAN STANLEY'S BYRD LISTS FIVE FAV : Dyn, nee, pcg, sre, fe
08/02 Entergy Corp's (ETR) CEO Leo Denault on Q2 2017 Results - Earnings Call Trans..
08/02 Entergy Corporation 2017 Q1 - Results - Earnings Call Slides
Financials ($)
Sales 2017 11 039 M
EBIT 2017 2 004 M
Net income 2017 1 263 M
Debt 2017 15 698 M
Yield 2017 4,53%
P/E ratio 2017 -
P/E ratio 2018 16,03
EV / Sales 2017 2,69x
EV / Sales 2018 2,77x
Capitalization 13 959 M
Duration : Period :
Entergy Corporation Technical Analysis Chart | ETR | US29364G1031 | 4-Traders
Technical analysis trends ENTERGY CORPORATION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 18
Average target price 79,3 $
Spread / Average Target 1,9%
EPS Revisions
Leo P. Denault Chairman, President & Chief Executive Officer
Paul D. Hinnenkamp Chief Operating Officer & Senior Vice President
Andrew S. Marsh Chief Financial Officer & Executive Vice President
Maureen Scannell Bateman Independent Director
Donald C. Hintz Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
IBERDROLA6.30%49 734
SOUTHERN CO-0.33%49 004