Saturday, August 2, 2008

Entergy Seeks Rate Changes

Posted By on Sat, Aug 2, 2008 at 3:22 AM

Entergy New Orleans Inc. is asking the New Orleans City Council to approve a $23 million reduction in electric rates and the fuel adjustment charge, which if approved, will save customers with typical electric use about $6.40 a month. Any approved changes would go into effect in April 2009. 

Entergy spokesman Morgan Stewart says the utility filed the rate case on Thursday (July 31) but does not know when the City Council, which regulates Entergy New Orleans, will take up the matter.

Entergy is requesting that the temporary $10.6 million electric rate the company implemented in January be made permanent. It also is seeking to reduce fuel costs on all residential electric customer bills by $12.3 million, which would save typical customers about $3.19 per month on fuel adjustment charges. The two components of the plan together would reduce an average customer’s bill from $118.28 to $111.87. The savings estimate of $6.40 per month is based on electric usage of 1,000 kwh per month. 

“Entergy New Orleans has heard the concerns of the City Council and our customers regarding rising fuel costs,” says Rod West, president and chief executive officer of Entergy New Orleans. ”This proposal provides an opportunity to reduce fuel adjustment charges for customers at a time when fuel prices are impacting the entire country.” 

In addition to the rate reductions, Entergy is proposing a $9.1 million gas rate adjustment it says it needs to meet its cost of providing and maintaining gas service. It estimates the change would cost an extra $1.83 a month for residences that use 1,000 kwh of electricity and 50 ccf of gas per month. 

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