Entergy Texas settles on cost savings agreement
Approximately $200 million will return to customers of Entergy Texas, under a new settlement agreement reached between the utility and various parties in a rate case filed earlier this month.
While the Public Utility Commission of Texas still needs to approve the agreement, it is set to operate over the next four years, depending on customer class. Customers will also be credited $25 million beyond the $200 million to reflect lowered federal tax rates in 2018, as part of a Federal Income Tax Credit Rider. Additionally, Entergy will be able to recover approximately $1.2 billion in improvements for system modernization, from power plant improvements to distribution facility upgrades and improved customer service systems.
“We are pleased to reach an agreement with the parties in the case that benefits customers and helps ensure reliable and affordable energy for Southeast Texas,” Sallie Rainer, president and CEO of Entergy Texas, said. “We are committed to investments that minimize disruptions from outages and give our customers more tools and technology to better control their energy usage.”
Usage amount will affect the cost savings going forward. For example, though using 1,000 kilowatt hours (kWh) per month will see only a few cents difference in their bills, while those using 1,500 kWh will see a $1.23 difference each month and those using 3,000 kWh will see around a $5 difference in their monthly bills.
