Entergy Mississippi Customers Likely to See Lowest Bills in Six Years
Utility files fuel adjustment for first quarter of 2010
Customers of Entergy Mississippi, Inc. will likely soon see electric bills drop again–this time some 11 percent from January through March as compared to the same period in 2009.
The company has submitted its routine quarterly fuel adjustment to the staff of the Mississippi Public Service Commission. If approved, customers’ bills will be the lowest they have been in more than six years.
The submittal shows typical residential customers using 1,000 kilowatt hours per month will pay about $79.46 beginning January 1. Typical monthly residential bills for the first quarter of 2009 were $89.32, a difference of nearly $10.
Bills have dropped even more from summer 2008 when skyrocketing natural gas prices caused a 28 percent hike. In fact, the typical customer’s bill is 40 percent less than in July and August 2008 when the same amount of electricity cost nearly $133. That’s a savings of more than $53.
Falling natural gas prices is the main reason. The price of natural gas peaked at more than $13.50 per MMBtu in July 2008 before falling to as low as $3.58 per MMBtu earlier this year. The Henry Hub price in early November was $4.28 per MMBtu and is predicted to continue rising in the near future.
“We’re pleased that our customers will benefit from lower natural gas prices,” said Haley Fisackerly, president and chief executive officer of Entergy Mississippi, Inc. “We’re also fortunate to be able to pass along decreases when the approaching holidays and current economy are causing challenges for many of our customers.”
“However, the market is volatile and fuel prices could spike again and cause customers’ bills to rise, so we’re continuing to do everything we can to keep customers’ bills low,” he added. “For instance, working with the commissioners and the public utilities staff, we’ve managed to stabilize rates through summer of next year.”
The MPSC and the Mississippi Public Utilities Staff have 45 days before the start of the affected quarter to review the fuel adjustment submittal and make any changes.
Entergy Mississippi, Inc. provides electricity to more than 433,000 customers in 45 counties. It is a subsidiary of Entergy Corporation.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
Tuesday, Central District Public Service Commissioner Lynn Posey (D-Union Church) announced that the Mississippi Public Service Commission will act quickly on Entergy Mississippi’s quarterly fuel adjustment currently under review by the Public Utilities Staff to insure lower, as well as stable, rates for Entergy Mississippi customers.
This action, coupled with previous actions by the Commission, will insure that Entergy Mississippi customer rates remain stable through at least the summer of 2010.
Posey also noted that the natural gas market is still very volatile and that the Commission has to continue to work hard to insure that customers receive the most affordable, stable, and reliable prices possible.