Entergy Louisiana to reduce rates throughout 2018 in response to tax reductions
The Louisiana Public Service Commission (PSC) recently approved an agreement under which Entergy Louisiana will lower customer rates throughout the remainder of 2018 as a result of federal tax savings.
The agreement extends and modifies Entergy Louisiana’s Formula Rate Plan for three more years and provides a mechanism for determining the rates Entergy Louisiana charges through August 2021.
The company will save approximately $210 million due to federal tax reform. It will return $105 million of those savings to its customers over the next eight months and return the remaining half to customers over the following four years. Entergy Louisiana will also use approximately $130 million in annual tax savings to offset the cost of upgrading infrastructure.
“Along with customer refunds, tax reform also helps provide us the ability to invest in modernizing our system for the benefit of customers while maintaining some of the lowest rates in the country,” Phillip May, president and CEO of Entergy Louisiana, said.
The first rate reduction will occur in May. The typical residential customer using 1,000 kWh per month will see a reduction of approximately $4.20 on their monthly bills from May through December of this year. A second reduction to residential bills of approximately $2 per month will occur in September.
