Electricity bills to increase this February

Electricity bills to increase this February

Dec 20 - McClatchy-Tribune Regional News - David Ball The Port Arthur News, Texas

Electricity bills for Entergy customers will go up as the result of a rate increase tentatively approved by state regulators.

The average 1,000-kilowatt hour residential bill will increase from a current total amount of $127.28 to $132.36 or slightly less than 4 percent.

Increases will be reflected on customer bills beginning February 2009, and will result in a $46.7 million annual increase in base rates for Entergy Texas.

Entergy Texas, Inc. has reached a settlement in its rate case first filed with the Public Utility Commission of Texas in September 2007.

The agreement must be approved by the PUCT before it is final. Entergy Texas and the other parties, however, have requested implementation of the increase on an interim basis until the PUCT's final decision.

Entergy Spokesperson Debi Derrick said this was the first rate increase by the company in 18 years.

Key elements in the new settlement, in addition to the increase in revenues to the company, include the following:

--Funding for low-income programs, including development of a Public Benefit Fund. The fund will receive $2 million per year to assist qualified customers with their electric bills. Although a part of settlement negotiations, these funds will not come from customers. They are provided by Entergy Texas.

--The company's low-income energy efficiency program will also receive assistance. It will receive $1.2 million in 2009. The amounts for this program will be updated annually.

--Entergy Texas' storm fund will increase. The fund currently receives $1.6 million annually. That amount will increase by another $2 million per year to a total of $3.65 million.

Derrick called the rate increase "a nominal amount" and will move the company to a better financial place and help low income customers.

Sabrina Vrooman is a Port Arthur resident and business owner. She's not looking forward to Entergy's rate hike, but figures their rates will be going up like everything else is going up.

dball@panews.com