RATE CASE FACT SHEET

Why are Entergy Louisiana and Entergy Gulf States Louisiana seeking rate increases?
• Since 2004 the companies’ base rates have, under an order of the Louisiana Public Service Commission, been set using a Formula Rate Plan approved by the LPSC. The companies’ Formula Rate Plans expired with their filings in 2012, and the LPSC has required that each company file a rate case. • The companies have made capital investments in the electrical system to cut fuel costs, improve reliability and meet statewide power demand with clean, efficient and affordable electricity. These investments are reflected in the rate case. • Part of the rate increase also will pay for repairs and restoration of the electrical infrastructure in case of a future emergency. • Most importantly, the demands being placed on the electric grid today are vastly different and greater than those for which it was designed and built. The next two decades will require extraordinary investments in the U.S. electric infrastructure. To ensure that we are able maintain healthy companies that can continue to affordably provide safe, clean, reliable power to our customers into the future, Entergy is pursuing smart solutions today: joining the Midwest Independent Transmission System Operator, Inc. and the proposed spin-off and merger of Entergy’s transmission business with ITC Holdings Corp. Making these critical changes will require some adjustments to the way Entergy Louisiana and Entergy Gulf States Louisiana recover costs.

How do our rates compare with other states?

Louisiana - 2012

8.35

cents/kWh

National Average - 2012

11.91

cents/kWh

In 2012, our customers averaged about

Why does Entergy need to make these business model changes, and how will they benefit customers?

Louisiana’s population and economic opportunities are growing year by year and are driven by dependable, affordable electric power. Electricity to power their homes. powers the necessities and conveniences of our customers’ lives – everything from televisions to smart phones, air conditioners to cooktops, grocery stores to manufacturing plants. But as demand for power grows, weather, maintenance schedules, generating costs and other factors create a complex daily interplay between electricity supply and demand. To best manage that supply and demand, Entergy has received approval from the LPSC to join the Midwest Independent Transmission System Operator, Inc. Better known as MISO, the regional transmission organization has a footprint from Canada to the Gulf of Mexico, and will drive efficiency and reliability and provide a projected $430 million to $575 million in savings for Louisiana customers. To build on MISO membership and provide the benefits of expertise, financial strength and enhanced reliability, Entergy also is seeking to spin off then merge its transmission business with ITC Holdings Corp., a leading independent, transmission-only company. Upgrading and modernizing the U.S. electric grid will require significant capital expenditures – industry infrastructure investment, driven by replacement of existing assets, environmental regulations and other compliance requirements, that could range from $1.5 trillion to $2 trillion between 2012 and 2030. The capital investments required over the next decade will drive costs higher for customers, but Entergy is pursuing the ITC transaction to create a separate, independent transmission company that will deliver focused expertise, enhance reliability and enable greater financial strength and flexibility to make the necessary investments into the future as affordably as possible.

$3.50/day

RATE CASE FACT SHEET
How will the rate case impact bills?

2

Entergy Louisiana and Entergy Gulf States Louisiana each have filed with the LPSC two possible scenarios for rate increases. The first scenario plans for Entergy to join MISO and spin off then merge its transmission business with ITC Holdings. The second scenario assumes Entergy only joins MISO. The impact to base rates and customer bills are different depending on the scenario.
SCENARIO 1: MISO and ITC
Entergy Louisiana, LLC Residential Customer (using 1,000 kWh/month) Small General Service Customer (using 12,500 kWh/month) Large General Service Customer (using 500,000 kWh/month) $7.56 increase/month $76.81 increase/month $1,918.13 increase/month 7.7% increase/month 5.6% increase/month 5.1% increase/month

What factors go into electricity costs?
Many factors – including fuel costs, system improvements and environmental concerns – affect the cost of producing electricity and, in turn, the price you pay. At Entergy, we are continuously balancing these factors to provide you with clean, safe, reliable electricity at the most reasonable rates possible. That’s our commitment to all our customers – our employees, neighbors, businesses and the communities in which we live and work. As part of that commitment to meet your power needs today and into the future, Entergy Louisiana and Entergy Gulf States Louisiana have asked the Louisiana Public Service Commission for a change in our electric rates, including an increase in residential rates that, if approved, would likely go into effect in February 2014.

Entergy Gulf States Louisiana, L.L.C. Residential Customer $2.30 increase/month (using 1,000 kWh/month) Small General Service Customer ($13.27) decrease/month (using 5,000 kWh/month) Large General Service Customer $189.85 increase/month (using 250,000 kWh/month)

2.6% increase/month (2.5%) decrease/month 1.1% increase/month

SCENARIO 2: MISO Only
Entergy Louisiana, LLC Residential Customer (using 1,000 kWh/month) Small General Service Customer (using 12,500 kWh/month) Large General Service Customer (using 500,000 kWh/month) $6.80 increase/month $86.72 increase/month $2,028.25 increase/month 6.9% increase/month 6.4% increase/month 5.4% increase/month

Entergy Gulf States Louisiana, L.L.C. Residential Customer $2.41 increase/month (using 1,000 kWh/month) Small General Service Customer $5.13 increase/month (using 5,000 kWh/month) Large General Service Customer $262.84 increase/month (using 250,000 kWh/month)

2.7% increase/month 1.0% increase/month 1.6% increase/month

The LPSC must render a full decision on the rate case application and proposed rate schedule within 12 months after the effective filing date, which was Feb. 15, 2013. Here is an overview of the rate case process: • First, we have to demonstrate to the LPSC exactly why the increase in rates is needed. • The commission thoroughly reviews our request and holds hearings to allow customers to comment. • We anticipate that later this year, the commission will conduct hearings and consider our written and oral testimony, along with differing viewpoints representing customer groups and other stakeholders.

What are the next steps?

These tables show the average impact proposed for each customer class. The specific increase or decrease to individual customers will vary depending on the rates they pay and other factors.

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