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Stories Added December 2010
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Good news for Tyler County Electricity Users

Tyler County Booster

Two fuel-related actions taken by Entergy Texas, Inc. will mean the company’s customers will start the new year with lower bills. First, credits totaling $18.6 million will show up on customer bills in January. In February, customers are expected to begin to see a fuel refund that, once completed, will total another bill-dropping $51.5 million. “We have lowered bills through fuel refunds and credits several times over the past year,” said Joe Domino, president and chief executive officer, Entergy Texas, Inc. “These latest two actions bring the total amount returned to customers through their bills to more than $350 million.” The one-time credit in January will drop the average 1,000 kilowatt-hour residential bill by $12.07. The credit is the result of an agreement Entergy Texas has with the other companies in the Entergy Corporation system of electric distribution companies, which includes Arkansas, Louisiana and Mississippi. The agreement calls for the cost of producing electricity for customers to be “roughly equal” among the companies. That means if it costs more to produce power in one company than in another, the Entergy utility in the state with the lower cost must make payments to customers in the higher cost state. The January credit reflects payment made by Entergy Arkansas, Inc., where coal-fired power plants have produced lower-cost electricity, making the payments allocated to Texas a part of the effort to equalize costs. In February, the company expects to begin refunding the $51.5 million in fuel costs, including interest through the refund period. Entergy Texas is asking the Public Utility Commission of Texas to allow the refund to take place over six months. If the PUCT grants the request, the average residential 1,000 kilowatt-hour bill will drop by $6.48 per month over the duration of the refund. The refund includes interest and reflects an over-recovery of fuel costs through October 2010. Per PUCT rules, Entergy Texas determines what it will charge customers for fuel twice a year, with the amount based on fuel costs at that time. The recovery charge stays in place on bills for the next six months. Fuel prices, however, frequently fluctuate, so the company may not recover enough of what it paid for fuel or may recover too much. When too much is recovered, customers receive the refund through their bills. Entergy Texas does not earn a profit on fuel expenses and only passes actual fuel costs through to its customers. Entergy Texas, Inc. provides electricity to more than 400,000 customers in 27 counties. It is a subsidiary of Entergy Corporation. Entergy Corp. is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy Texas’ online address is entergytexas.com Twitter: @EntergyMediaTX

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