Entergy Mississippi reaches $300M settlement with Mississippi PSC
Entergy Mississippi reached a $300 million settlement with the Mississippi Public Service Commission over the Grand Gulf Nuclear Station.
The settlement agreement ends Mississippi’s part in multi-state rate proceedings before the Federal Energy Regulatory Commission (FERC) involving the customer rate impacts of Grand Gulf Nuclear Station. Entergy operates Grand Gulf and owns 90 percent of the station under its subsidiary, System Energy Resources, Inc.
As a result, Entergy estimates approximately $300 million in benefits to Mississippi customers, which customers will see in three ways. First, an estimated $200 million will be used to offset high fuel prices incurred to generate electricity. Second, an estimated $35 million will be provided as lump-sum bill credits to each Entergy Mississippi customer this year. The $35 million benefit results in a one-time credit of approximately $80 for Entergy Mississippi’s residential customers. Third, customers will receive the remaining benefits of the settlement in the coming years in the form of lower bills. In addition, Entergy Mississippi customers have already received another $50 million in bill credits through prior refunds made during the FERC proceedings.
“By resolving these issues, we can focus on the long-term future of Grand Gulf Nuclear Station to ensure it remains the critical, emissions-free power source it is to serve our customers,” Haley Fisackerly, Entergy Mississippi president and CEO, said. “With natural gas prices having tripled over the last year, raising customer power bills as a result, the low-cost power we get from Grand Gulf is a financial lifeline to our customers right now.”
The settlement involved more than a dozen separate proceedings, including some that raised decades-old issues, brought by the public service commissions of Louisiana, Arkansas, the City of New Orleans, and, in part, Mississippi. The MPSC disputed the company’s position on a variety of issues involving the taxing, accounting, and financing of the nuclear unit and its impact on customers’ bills.
Entergy has maintained that the disputed positions regarding the taxing, financing, accounting, and operating of Grand Gulf before FERC are proper, well-reasoned, and in the best interest of its customers and the company. Entergy also believes Grand Gulf has provided consistent value for its customers over the years. However, Entergy officials said the ongoing cost of the dispute at FERC and the uncertainty it created for customers, employees, and stockholders led the company to seek a resolution.
“While no settlement is perfect for all parties involved, we applaud the Mississippi commissioners for taking this action. They recognized the need to represent their constituents’ interests while at the same time securing the long-term future of a vital resource to Mississippi consumers and Mississippi’s economy,” Fisackerly said.
Entergy officials will work closely with the MPSC to ensure the customer bill credits for its more than 461,000 customers in Mississippi are implemented as soon as possible.
