Entergy bills rising 28% over 3 months|[06/27/08]
Published 12:00 am Friday, June 27, 2008
Residential customers of Entergy Mississippi will see a 28 percent jump in electric bills July through September, utility officials announced Thursday.
Entergy says a typical customer using 1,000 kilowatt hours a month will pay about $29 more. During summer months, said Vicksburg Entergy spokesman Don Arnold, most customers use about 3,000 kilowatt hours of electricity per month.
Entergy blamed the increase on a 120 percent price rise in natural gas costs since last year.
Arnold said natural gas costs have fluctuated since January 2005.
“But we haven’t seen an increase like this,” he said. “Over the last three years, we’ve seen it go up and down quite a bit, and we’re hoping that pattern continues in this case. We would like to see that decrease in the quarter, but who knows what will happen.”
The news comes to Vicksburg residents a day after the City of Vicksburg announced its fifth increase in natural gas prices this year. That increase will bring the average natural gas bill in the city to $25.75 for a residence using 1,100 cubic feet of gas, up from $24.16 under the most recent rate.
Related StoriesVicksburg Warren School Districts might buy GPS systems for buses to save fuelVTR sees increased income because of fuel costsEntergy Mississippi, which provides electricity to 433,000 customers in 45 counties, makes a quarterly fuel filing with the Mississippi Public Service Commission to recover costs of fuel used to provide electric service to customers. The commission reviews the costs and adjusts the fuel component of customers’ rates accordingly. By law, the utility company is required not to profit on fuel charges.
“This expected increase is not an issue of any change in Entergy’s rate structure,” Arnold said. “This is just a straight pass-through increase regarding the cost of natural fuel.”
In the 1990s, natural gas prices were comparatively low. In addition, the decade’s milder winters meant utility customers used less gas to heat their homes. Consequently, prices were low and supply remained high.
The situation is different now. Today’s increases have been affected by higher oil prices, a lower-than-expected supply of gas from foreign countries, growth in consumption and a decline in inventories in recent years.
“While our company cannot control fuel prices at the national level, we are focused on the things that we can control,” he said.
In addition to Mississippi, Entergy delivers electricity to customers in Arkansas, Louisiana and Texas. It delivers to 2.6 million customers in total.
Conservation tipsConservation tips from Entergy Mississippi:Raise thermostat to 78 degrees during warmer months to reduce electricity use by as much as 20 percent. Air-conditioning can account for up to 55 percent of an average home’s monthly bill.Seal leaky windows and doors with caulk and/or weather stripping.Conserve hot water with a timer that turns the heater off when no one is home.Use ceiling or box fans to circulate cool air.Use energy-efficient bulbs when replacing bulbs.