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Wednesday, June 26, 2019

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Entergy Louisiana to return millions in tax savings to customers

Entergy Louisiana to return millions in tax savings to customers

State regulators approved agreement

BATON ROUGE, La. – Entergy Louisiana customers will see a series of rate reductions over the remainder of 2018 under an agreement approved Wednesday by the Louisiana Public Service Commission (LPSC).

The first of the reductions will occur in May as a result of $210 million in federal tax reform-related savings, $105 million of which will be returned to customers over the next eight months, with the remaining half of these savings returned to customers over the following four years.

As a result, a typical residential customer using 1,000 kWh per month will see a roughly $4.20 decrease on monthly bills from May through December of this year.

A second reduction of approximately $2 per month on residential bills will occur in September 2018 as a result of additional credits tied to the Tax Cuts and Jobs Act approved by Congress in late 2017. At the same time, Entergy Louisiana will begin realizing approximately $130 million in annual tax savings to offset the cost of upgrading infrastructure.

These reductions are the result of an agreement approved by the LPSC that extends and modifies Entergy Louisiana’s Formula Rate Plan for three more years and will provide a mechanism for determining the rates Entergy Louisiana charges through August 2021.

In addition to the tax-related rate reductions, customers will see significant savings in October when recovery of storm restoration costs associated with hurricanes Katrina and Rita rolls off bills. The typical legacy Entergy Louisiana residential customers using 1,000 kWh per month will see a reduction of approximately $4.15 in the storm restoration charge on their monthly bill.

The storm restoration charge will be about $2.55 less per month for the typical legacy Entergy Gulf States Louisiana residential customer using 1,000 kWh.

Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to nearly 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.