Entergy Mississippi to see rate hike
Wednesday, August 14, 2013 1:00 PM
JACKSON - Beginning in September, Entergy Mississippi customers will see a slight increase in base rates. The typical residential customer using 1,000 kWh per month will pay about $2.71 more under the Formula Rate Plan. That's an increase over the current bill of $100.12. Entergy Mississippi's residential rates will remain about 10 percent below the current national average residential rate of $116.30.
This is the first time since 2009 that Entergy Mississippi has been allowed to adjust rates under its Formula Rate Plan. The increase will be used to recover costs associated with improvements in infrastructure and reliability. The Formula Rate Plan is an annual plan that encourages utilities to meet performance goals set by the Mississippi Public Service Commission. The plan provides an objective framework for the commission to judge Entergy's performance.
"We've invested $500 million in Mississippi over the last four years to ensure we keep the lights on," said Bob Grenfell, Entergy Mississippi vice president of regulatory affairs. "This modest increase allows us to recover those dollars and make plans for future reliability projects."
These improvements include upgrading or installing more than 150 miles of transmission lines, three new substations and adding or upgrading equipment in 30 substations. In 2013, an additional $83 million will be spent in Mississippi on reliability improvements and $13 million will be spent on clearing vegetation.
"These improvements are important to customers because they provide for increased reliability, capacity for economic growth and the ability for flexible use of the power plants on the grid," said Grenfell.
Customer's electric bills are made up of a combination of rates and usage. Customers using more than the typical 1,000 kWh per month will see higher bills because of this usage, while those using less will see lower bills. For simple tips on how to save money on energy costs without sacrificing comfort, visit entergy-mississippi.com/your_home/save_money/