Posey Announces Lower, Stable Rates for Entergy Customers

Posey Announces Lower, Stable Rates for Entergy Customers

Jackson, MS. (09/25/09) ? Public Service Commissioner Lynn Posey announced today a rate reduction in the fuel portion of Entergy customer bills for the 4th quarter of this year. Residential customers with average usage of 1000 kwh per month will see a reduction of fuel costs of $1.23 per month. This comes on the heels of a reduction in fuel costs for the current quarter of this year.

A typical residential bill in the 4th quarter of 2009 will be approximately $88.35 per month. Last year a typical residential customer bill for the 4th quarter was $104.03, the primary difference at that time, being much higher natural gas costs to run power plants than exists today. This shows the volatility of natural gas prices which makes it difficult for customers to budget for monthly electric bills.

Because fuel costs are adjusted quarterly, based upon projected natural gas prices there is either an under?collection or over?collection from customers, and those revenues are factored in the calculations for following quarterly adjustments.

In order to provide stability in electric rates a majority of the Commission adopted, upon recommendation of the Public Utilities Staff, the rate reduction along with a deferral of $31.8 million of over?collections from the 2nd quarter of this year to the 2nd quarter of 2010. This deferred amount, plus interest to be paid by Entergy, is expected to offset projected increases in natural gas costs next spring. Commissioner Posey stated that “In my judgment, this plan will reduce the burden on customers by providing reasonable rates with stability and eliminating dramatic fluctuations in bills which customers have not budgeted for. Since natural gas costs are now at their lowest in several years, I think it is wise to prepare now for these costs rising next spring when electricity usage goes up.”

Posey Presser
9/26/9