Entergy Proposes Joining MISO, Citing Significant Cost Savings for Customers

Entergy Corporation's proposal to join the Midwest Independent Transmission System Operator (MISO) is expected to result in substantial cost savings for the company's customers. According to Entergy's analysis, customers of the company's six utility operating companies, including Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C., are projected to reap a combined estimated $430-575 million in net customer cost benefits over the ten-year period from 2013 to 2022. This potential savings represents a gross production cost savings of $1.4 to $1.6 billion for Entergy's customers.

Key Takeaways:

• Entergy's proposal to join MISO is expected to result in gross production cost savings of $1.4 to $1.6 billion for the company's customers over a ten-year period.
• Customers of Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. are projected to reap a combined estimated $430-575 million in net customer cost benefits from 2013 to 2022.
• The proposed joining of MISO will provide Entergy customers with a more efficient use of generating resources and access to a diverse mix of generating resources within the MISO region.
• The technical conference hosted by the Louisiana Public Service Commission (LPSC) will cover a wide range of matters related to Entergy's proposal to join MISO, including customer benefits and RTO membership.
• Bill Mohl, president and chief executive officer of Entergy Louisiana and Entergy Gulf States Louisiana, states that joining MISO is a sensible solution for Entergy's transmission future that will benefit customers through lower costs.
• Entergy's analysis suggests that MISO's established day-two market, which effectively and economically matches supply and demand for electricity, is a critical factor in determining the proposed cost savings.

Statistics:

• $1.4 to $1.6 billion: project gross production cost savings for Entergy's customers over a ten-year period
• $430-575 million: estimated net customer cost benefits for customers of Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. from 2013 to 2022
• 2013-2022: ten-year period studied in Entergy's analysis
• 10 years: duration of the period for which Entergy's customers will allegedly benefit from the proposed MISO membership.
• 6 utility operating companies: company-operated utilities included in Entergy's analysis of MISO membership benefits.

Sources:

• Entergy Corporation press release dated Aug. 10
• Entergy Corporation, as reported in Entergy press release
• Louisiana Public Service Commission (LPSC)