Entergy Mississippi Customers’ Bills to Drop Even More
Entergy Mississippi, Inc.
P.O. Box 1450
Jackson, MS 39211
Contact:
Mara Hartmann
(601) 969-2520 (office)
(601) 594-9042 (cell)
mhartma@entergy.com
Rapidly falling natural gas market provides opportunity for utility to make deeper cuts
Jackson, Miss. –In response to rapidly changing market conditions, Entergy Mississippi , Inc. has recalculated a proposed reduction in utility bills, nearly doubling the original 5 percent decrease suggested just last week.
A continued decline in natural gas prices nationwide led to the recalculation, which was submitted today to the Mississippi Public Service Commission for approval.
“After seeing prices skyrocket more than 120 percent since last year, we are now watching them drop significantly,” said Haley Fisackerly, Entergy Mississippi president and chief executive officer. “In proposing a 9.6 percent reduction, we are responding to the market and doing what we can right now to bring relief to our customers as quickly as possible.”
If approved by the commission, the proposed reduction will take effect with the September billing cycle and the typical residential customer using 1,000 kilowatt hours per month will see a savings of nearly $13.
Entergy Mississippi uses a diverse mix of fuel to generate electricity at the lowest reasonable cost. However, nearly 60 percent of the current generation mix is natural gas. The volatility of the natural gas market caused the 28 percent increase in customers’ bills beginning July 1.
Since then, the company has worked to manage through the increase, which reflects the actual costs of fuel incurred by Entergy Mississippi and is passed through dollar-for-dollar to customers with no profit for the company.
“We know the increase has been a challenge for customers these past two months, especially with the rising price of gasoline, food and other necessities,” Fisackerly said. “That is why we are stepping outside of our normal processes to pass the savings on to our customers now that the market has changed.”
Mississippi Public Service Commission guidelines require the utility to file a fourth quarter fuel adjustment calculation on August 15, 45 days prior to the effective date of any change. Changing market conditions may allow for further reductions, but require further evaluation which is currently being performed.
The company’s third quarter fuel adjustment filed in mid-May projected natural gas prices to be approximately $10 per mmbtu on average for the third quarter. During most of July prices were significantly higher, climbing to nearly $14 per mmbtu before falling dramatically to approximately $8 per mmbtu today, prompting the early August proposal for a 5 percent decrease and today’s larger proposed decrease of nearly 10 percent.
“Even with this recent drop in fuel prices, our nation and our state remain in the midst of an energy crisis,” said Fisackerly. “Entergy Mississippi will continue to work with our national and state leaders to explore responsible solutions to our nation’s energy problems that will benefit Mississippians.”
Entergy Mississippi, Inc. provides electricity to more than 433,000 customers in 45 counties. It is a subsidiary of Entergy Corporation. Entergy delivers electricity to 2.6 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
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Entergy Mississippi’s online address is www.entergy-mississippi.com.