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Sample Bill: Entergy Louisiana, LLC - Rate Schedule "LA"


 

Sample Definitions: Entergy Louisiana, LLC

Energy Charge

The Energy Charge represents the non-fuel costs of providing electricity. The Energy Charge includes things such as the cost of wires, poles, power plants, service trucks, and customer service. The Energy Charge is set by the Louisiana Public Service Commission (“LPSC”).

The Energy Charge does not cover the cost of fuel (natural gas or coal, for example) that Entergy Louisiana, LLC uses to generate electricity nor does it cover the cost of power purchased from other companies that is used to serve Entergy Louisiana customers. Those costs are reflected in the Fuel Adjustment.

Storm Restoration Offset

This line item is the result of net LPSC-approved savings associated with the Louisiana Utilities Restoration Corporation (“LURC”) bonds sold to pay for storm damage costs due to Hurricanes Katrina and Rita which will be on bills from 2008 - 2018; Gustav and Ike which will be on bills from 2010 - 2022; and Isaac which will be on bills from 2014 - 2026.

Fuel Adjustment

The Fuel Adjustment reflects the cost of fuel (natural gas or coal, for example) used to generate electricity, plus the cost of any power that Entergy Louisiana purchases from third party power producers that is used to serve Entergy Louisiana customers. These costs are passed on directly to customers without any profit to Entergy Louisiana.

There is a two-month delay in the recovery of costs through the Fuel Adjustment. For example, the Fuel Adjustment on September bills recovers the cost of fuel and purchased power Entergy Louisiana incurred in July. The LPSC periodically audits fuel costs to ensure that the costs paid by customers were prudently incurred.

Federal Mandated EAC Rider

The Federal Mandated EAC Rider first appeared on customers’ bills in August 2009. This charge appeared in order to comply with the United States Environmental Protection Agency’s (“EPA”) Clean Air Interstate Rules (“CAIR”) that were enforced in order to reduce and cap air pollutants such as nitrous oxide (NOx) and sulfur dioxide (SO2).

*Municipal Franchise Fee

This fee represents the amount of Franchise Fees imposed by the various municipalities for use of municipal right-of-ways for electric lines and related infrastructure. This fee is collected for and paid to the municipality. (*Where applicable. This line item does not appear on every Entergy Louisian bill.)

Storm Restoration Charge

This line item represents amounts paid to the Louisiana Utilities Restoration Corporation (“LURC”), which sold bonds on behalf of the company in order to pay for utility system restoration costs due to Hurricanes Katrina and Rita which will be on bills from 2008 - 2018; Gustav and Ike which will be on bills from 2010 - 2022; and Isaac which will be on bills from 2014 - 2026.

Louisiana PSC Case Credit (or Charge)

This line item may either be a credit or a charge and is related to a Federal Energy Regulatory Commission (“FERC”) order designed to roughly balance the production costs of Entergy’s Operating Companies in Louisiana, Arkansas, Mississippi, and Texas (Entergy Louisiana, LLC, Entergy New Orleans, Inc., Entergy Arkansas, Inc., Entergy Mississippi, Inc., & Entergy Texas, Inc.). A credit for this line item would appear on your bill as a result of payments made to your electric service provider by other Entergy Operating Companies that had lower production costs in a given year. A charge for this line item would appear on your bill as a result of payments made by your electric service provider to other Entergy Operating Companies that had higher production costs in a given year. The total credit or charge is based on the prior year and is listed on customers’ bills from June through December each year.