PSC to look at Entergy increase|[07/02/08]

Published 12:00 am Wednesday, July 2, 2008

A day after the state’s utility regulatory board said it would require earlier notice of rate increases, the Vicksburg spokesman for Entergy said his company’s higher charges announced last week might last longer than expected.

Entergy announced last week that a 28 percent fee increase would appear on bills this month and terminate in September.

“We really don’t know what natural gas will do,” said spokesman Don Arnold “Nobody has a crystal ball.”

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The charges will depend on natural gas prices, he said.

On Tuesday, the state Public Service Commission enacted new rules requiring utilities to give a 20-day notification on such fees to allow time for investigations. A hearing on Entergy’s rate increase was set for 10 a.m. Monday at commission offices in Jackson, but Central District Commissioner Lynn Posey said the meeting will not affect the announced fee or how long it will last. Instead, he said, it will serve to examine Entergy’s calculations.

“We just want to verify the numbers to make sure they are acquiring the cheapest natural gas possible,” Posey said.

Previously, utilities proposed adjustments to the Public Utilities Staff – a separate, independent agency – that recommended such actions to the three-member elected PSC. Tuesday’s rule change does not cut that panel out of the mix, Posey said, as it simply changes the lead time on adjusting customers’ bills.

If you goThe Public Service Commission’s hearing on Entergy Mississippi’s fuel adjustment fee will be at 10 a.m. Monday at the Woolfolk Building, 501 N. West St. in Jackson.”At this time last year, we were paying $6 per thousand cubic feet for natural gas,” Arnold said. “Now we’re paying $12.”

Entergy has said a typical customer using 1,000 kilowatt hours a month will pay about $29 more. During summer months, usage typically increases to about 3,000 kilowatt hours of electricity per month.

Natural gas rates for customers of Vicksburg’s publicly purchased supply will increase for the fifth time this month. It 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. During the winter, the average natural-gas heated home uses 12,000 cubic feet.

The PSC, which regulates electric power, telephone, water and gas-line utilities, has three commissioners representing the northern, central and southern regions of the state. The central district covers 22 counties, including Warren, Claiborne, Sharkey and Issaquena.

Entergy provides electricity to 433,000 customers in 45 Mississippi counties and makes quarterly fuel adjustments to recover costs of fuel used in its operation. Other providers, such as Mississippi Power and CenterPoint Energy, adjust annually or bi-annually.

In addition to Mississippi, Entergy delivers electricity to customers in Arkansas, Louisiana and Texas. It delivers to 2.6 million customers in total.