Entergy proposes joining regional transmission organization

With Entergy as a member, the footprint of the organization would extend from the Canadian Border to the Gulf of Mexico

Apr 25th, 2011

New Orleans, April 25, 2011 — Entergy Corp. has concluded that joining the Midwest Independent System Operator will provide long-term benefits for the customers of the Entergy operating companies.

The Entergy operating companies will provide detailed analysis supporting these conclusions to their retail regulators in May and anticipate submitting formal proposals to those regulators later this year, with a target implementation date for joining MISO of December 2013.

MISO is an independent, nonprofit, Regional Transmission Organization that supports the reliable delivery of electricity in 13 U.S. states. RTOs are independent entities that manage and operate the transmission system within a specific geographic area.

With Entergy as a member, the footprint of the organization would extend from the Canadian Border to the Gulf of Mexico.

Over the past decade, Entergy has carefully evaluated a number of alternatives regarding the best management structure for its transmission system. Most recently, Entergy has worked with the Entergy Regional State Committee, a committee formed by the retail regulators of the Entergy Operating Companies, to evaluate joining an RTO (either the Southwest Power Pool or MISO) or enhancing the current Independent Coordinator of Transmission (ICT); an arrangement where SPP serves as the ICT.

With leadership and input provided by the E-RSC, as well as the Federal Energy Regulatory Commission, the joint effort was intended to evaluate alternatives that not only would achieve savings to the customer, but also provides greater transparency in the marketplace and independence in the decision making process.

Entergy received and appreciates the substantial support and efforts of SPP as the ICT and as facilitator for the E-RSC effort and it looks forward to a continued close working relationship with SPP in the future.

One of the advantages of joining MISO is becoming a part of its already established "Day 2" market, or a centralized market-driven dispatch process. This process creates a large wholesale market for the buying and selling of electricity, creating a substantial portion of savings for the customers.

The study done by Entergy included independent analysis of the savings and actual proposals from SPP and MISO on how certain costs would be shared. The study concluded that joining MISO could save customers more than $1 billion in power production costs for the 2013 to 2022 timeframe. While both MISO and SPP were assumed to have a Day 2 market, only MISO currently has an operating market today.

On or before May 12, the Entergy operating companies will submit a report to their retail regulators containing the detailed information and analysis that forms the basis for their recommendation. After this initial submittal, the Entergy operating companies anticipate submitting formal proposals with their respective retail regulators later this year, with a target implementation date for joining MISO of December 2013.

The Entergy operating companies are Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., and Entergy Texas, Inc.

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