Entergy Louisiana files new formula rate plan with Louisiana PSC
Entergy Louisiana filed a new rate plan with the Louisiana Public Service Commission, which accounts for future improvements to the grid while maintaining low rates.
The company proposes modifying and extending its current Formula Rate Plan (FRP), a framework that sets the utility’s base rates using actual costs and revenue and adjusts them annually, for three years. The FRP has allowed Entergy Louisiana to upgrade its electric system through various distribution, transmission and generation projects; deploy smart devices onto the system to minimize outage impacts; and incorporate renewable power, among other measures. Extending the FRP would allow the company to continue performing this work, as well as trim trees away from electric equipment and accelerate the hardening of its grid.
The proposed FRP seeks approval of an approximately $173 million electric revenue requirement increase based on an extension of the FRP. That is a reduction of more than half in comparison to the cost-of-service study results.
If the plan is approved and implemented as proposed, the average Entergy Louisiana residential customer using 1,000 kWh would see their monthly bills go up approximately 5.6 percent, or $6.75. Despite the increase, the electric rates remain below the national average.
The company is proposing extending its FRP in lieu of a full rate case, a route that reduces by more than half the revenue requirement increase supported by a cost-of-service study.
“We have always been committed to providing our customers with clean, reliable and affordable power, and today’s filing with the Louisiana Public Service Commission is an important step toward continuing to meet that commitment,” Phillip May, Entergy Louisiana president and CEO, said. “We know that our customers are relying on us to keep the lights on and their bills as low as possible, and that is the spirit of today’s filing and the investment we’ve proposed to the Commission on behalf of the residents and businesses we serve.”
The FRP also includes several measures to directly benefit customers, including $1 million to assist customers in need and providing free home energy efficiency kits and $1 million toward the Power to Care program for older adults and disabled customers.
Entergy plans to continue investing in projects to strengthen its electric system to improve reliability.
Entergy Louisiana provides electric service to more than 1 million customers in 58 parishes and natural gas service to more than 94,000 customers in Baton Rouge.
