Entergy’s Louisiana utilities file with public service commission to join MISO

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Baton Rouge, La., October 31, 2011 – Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. filed a joint application with the Louisiana Public Service Commission seeking to join the Midwest Independent Transmission System Operator, Inc.

The companies’ joint application seeks to transfer functional control of their transmission facilities to MISO by December 2013. The joint application is the next step in pursuit of Entergy Louisiana’s and Entergy Gulf States Louisiana’s proposal to join MISO as transmission-owning members, which was initially announced by the companies in April.

After extensive review and analysis, it was determined that joining MISO would provide the greatest benefits to Entergy Louisiana and Entergy Gulf States Louisiana customers.

The companies’ analysis shows that joining MISO is expected to result in net benefits to the customers of Entergy Louisiana and Entergy Gulf States Louisiana, collectively, of $430 – 575 million net present value basis based on a study period of 2013 to 2022. 

These savings are largely attributable to MISO’s organized power markets, which allow for a more efficient commitment and dispatch of generation resources, and to economies of scale offered by an RTO of MISO’s size.

MISO operates across 12 states and one Canadian province and, with the addition of the Entergy operating companies to its membership, will stretch from Canada to the Gulf of Mexico. 

Another important factor in the selection of MISO is that under the provisions of MISO’s tariff and its transition proposal to the Entergy operating companies, customers will be allocated costs for region-wide transmission projects only in proportion to the benefits they are expected to receive from those projects.

In addition, with the move to MISO, Louisiana’s transmission grid is expected to operate even more reliably as a result of MISO’s sophisticated, state-of-the-art monitoring tools, congestion management processes and backup capabilities. 

The LPSC’s regulatory jurisdiction to establish the terms and conditions, including rates, for service to the companies’ customers is unaffected by the proposed move to MISO. Additionally, MISO membership brings the opportunity for the LPSC to participate in MISO’s larger-scale regional planning process and its Organization of MISO States, which provides input to MISO’s management team and board of directors.

While Entergy Louisiana and Entergy Gulf States Louisiana are the first to file for change of control with their regulators, other Entergy operating companies are expected to follow in the coming weeks and months.

Entergy’s Louisiana utility companies serve more than one million customers through the operating companies Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. With operations in southern, central and northeastern Louisiana, the companies are part of Entergy Corp’s electric system serving 2.7 million customers in Louisiana, Arkansas, Mississippi and Texas.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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