Thursday, September 16, 2010

What Entergy giveth ....

Posted By on Thu, Sep 16, 2010 at 4:17 PM

... Entergy taketh away after a recent rate reduction. Or at least a bit of it. It has filed a proposal with the Public Service Commission for an increase in the amount customers pay to cover the cost of the company's generating fuel. It has asked for a jump of a bit more than a half-cent per kilowatt hour of electricity, or about $5 for 1,000 kwh. An Entergy statement takes the long view:

Entergy Arkansas filed Thursday with the APSC to raise electricity rates for fuel and purchased power.

The fuel and purchase power charge, which appears on an Entergy bill as Fuel and Purchased Power Costs, covers the cost of fuel bought by utility companies to generate electricity. The increase is doe to the overwhelming heat of the past few months.

We typically adjust our fuel and purchased power charge every April 1 but because of some rising gas prices and the heat wave it caused us to purchase more power than we predicted we would not to. It caused us to spend more than we were recovering.

A typical customer using 1,000 kilowatts of electricity will pay $90.70 starting October 1 if the APSC approves. That’s about what customers were paying in 1998. Entergy customers saw a 23 percent decrease in July.

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