Entergy Corporation Files Application for Independent Transmission Company

Strategic Insights -

Entergy Corporation, a major global energy company, has filed with the Federal Energy Regulatory Commission an application for approval of the transfer of its transmission assets to an independent transmission company, or Transco. This move is aimed at complying with FERC Order No. 2000, which requires certain public utilities to form a Regional Transmission Organization (RTO) or describe efforts to participate in one. The proposal also involves a partnership with the Southwest Power Pool (SPP) to form an RTO, with the Transco operating under SPP's oversight. This partnership would satisfy FERC's requirements for an RTO, allowing Entergy to comply with the December 15, 2001 deadline.

Key Takeaways:

  • Entergy Corporation seeks approval for the transfer of its transmission assets to an independent transmission company, or Transco, as required by FERC Order No. 2000.
  • The proposed partnership arrangement with the Southwest Power Pool (SPP) aims to form a Regional Transmission Organization (RTO) that would satisfy FERC's requirements.
  • The Transco will operate under SPP's oversight, and the two entities will work together to manage and regulate the transmission system.
  • Entergy's transmission system spans 15,000 miles across eight southwestern states, including Arkansas, Louisiana, Mississippi, and Texas.
  • The company has been a leader in the transition to independent transmission companies, with its first declaration made in 1998.
  • Entergy owns or invests in power plants generating nearly 30,000 megawatts of electricity domestically and internationally.
  • The company serves about 2.5 million customers in portions of four states and is a leading provider of wholesale energy marketing and trading services.

Statistics:

  • 15,000 miles: Entergy's transmission system spans this distance across eight southwestern states.
  • 30,000 megawatts: Production capacity of Entergy's power plants domestically and internationally.
  • 2.5 million: Number of customers served by Entergy in portions of Arkansas, Louisiana, Mississippi, and Texas.
  • 1998: Year Entergy declared its intent to create an independent, incentive-driven transmission company.
  • 2000: The year FERC Order No. 2000 was issued, requiring public utilities to form a Regional Transmission Organization (RTO) or describe efforts to participate in one.
  • 2001: The year by which RTOs must commence operation, as per FERC Order No. 2000.

Sources:

  • FERC Order No. 2000
  • Entergy Corporation press release (dated Oct. 16)
  • Entergy Corporation website (www.entergy.com)
  • Southwest Power Pool (SPP) website (www.spp.org)