Entergy Mississippi files rate case, electric service modernization plan
Company files first rate case in 12 years, outlines plans for modernization, economic development
Entergy Mississippi, Inc. has a plan for Mississippi's electric service needs through 2025. To implement that plan, the company has filed its first general rate case in nearly 12 years with the Mississippi Public Service Commission.
This rate case is a blueprint for the future that lays out the company's plans for improving reliability, modernizing the grid, maintaining its workforce, stabilizing rates, using new technologies, attracting new industry and more.
Items in the proposed plan include:
· Three 500 KW utility-scale solar power projects
· A green power option for customers
· Distribution and transmission improvements to modernize the grid and reduce outage frequency and length
· Rate incentives to help attract new and expanding industrial customers
· New regulatory mechanisms to aid in providing electrical service to attractive industrial sites. This will help attract economic development and job creation
· Making a two-year discount permanent for eligible, new small businesses
The filing seeks an increase in revenues that would change the monthly bill of a typical residential customer using 1,000 kWh per month by about $6.28, or about .20 cents per day. However, this increase is expected to be offset by the expiration of other charges being billed on a temporary basis, including the recently approved fuel and ad valorem tax increases totaling $5.57.
The net impact on typical customer bills is expected to be less than .75 cents, or less than .03 cents a day. Entergy Mississippi is not asking for an increase in its allowed shareholder rate of return on equity.
The national average residential rate per 1,000 kWh is $122.60, according to the U.S. Department of Energy's latest figures. Based on expected fuel costs and current projections, Entergy Mississippi's residential rate in January will be about $114.36.
Despite increasing costs from more numerous and stringent federal regulations and flat sales growth since 2008's economic downturn, Entergy Mississippi has been able to keep rates low through the years by reducing overhead costs and making smart power planning decisions. The proposed rate case will help Entergy continue this trend.