Sample Bill: Entergy Louisiana, LLC

1) 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 ("ELL") uses to generate electricity nor does it cover the cost of power purchased from other companies that is used to serve ELL customers. Those costs are reflected in the Fuel Adjustment.

2) 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 Gulf States Louisiana, L.L.C., 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.

3) 2005 Hurricane Offset Charge

This line item is the result of net tax and other 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. This line itemwill appear on customers’ bills until approximately August 2018 and is updated once a year, in April.

4) 2008 Hurricane Offset Charge

This line item is the result of net tax and other LPSC-approved savings associated with the Louisiana Utilities Restoration Corporation (“LURC”) bonds sold to pay for storm damage costs due to Hurricanes Gustav and Ike. This line item will appear on customers’ bills until approximately August 2020 and is updated once a year, in April.

5) 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 ELL purchases from third party power producers that is used to serve ELL customers. These costs are passed on directly to customers without any profit to ELL.

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 ELL incurred in July. The LPSC periodically audits fuel costs to ensure that the costs paid by customers were prudently incurred.

6) Federal Environmental Adjustment

The Federal Environmental Adjustment 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).

7) *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 ELL bill.)

8) LURC 2005 Hurricane Charge

The 2005 LURC Hurricane Charge is for amounts paid to the Louisiana Utilities Restoration Corporation (“LURC”), which sold bonds on behalf of ELL in order to pay for utility system restoration costs following Hurricanes Katrina and Rita in 2005. This line item will appear on customers’ bills until approximately August 2018 and is updated twice a year, in April and October.

9) LURC 2008 Hurricane Charge

The 2008 LURC Hurricane Charge is for amounts paid to the Louisiana Utilities Restoration Corporation (“LURC”), which sold bonds on behalf of ELL in order to pay for utility system restoration costs following Hurricanes Gustav and Ike in 2008. This line itemwill appear on customers’ bills until approximately August 2020 and is updated twice a year, in April and October.