Public Service Commission approves rate increase on Entergy customers
Published 10:00 am Friday, January 13, 2017
Residential and commercial Entergy customers in Vicksburg can look forward to higher electric rates in February after the Mississippi Public Service Commission Thursday approved higher rates for the utility provider because of an increase in natural gas prices.
According to Entergy officials, the increase means residential customers using about 1,000 kilowatt hours a month will pay about $99; about a $7 a month increase.
Commercial customers, like the city of Vicksburg, will have to wait until the increase goes into effect before determining its effect.
“I had not seen them (the rates), but it’s been my experience they (the PSC) wouldn’t have granted it if they thought it was going to have a negative impact on the customer,” Vicksburg Mayor George Flaggs Jr. said.
“But as far as the city and our use, I think we can adjust.”
The city is one of Entergy’s largest customers.
City accounting director Doug Whittington said the Vicksburg spent $1.617 million for electricity in fiscal 2016; $783,000 of that for street lights.
According to Entergy officials, the new residential rate will remain below the national average rate, which is estimated by the U.S. Department of Energy at $124.50 a month.
The increase comes after Entergy customers had 12 months of reduced rates because of low natural gas prices that kept the cost of producing energy low. Those low fuel costs were passed on to customers in the form of lower rates.
According to the U.S. Energy Information Administration, the price of natural gas in January 2016 was $1.50 per thousand cubit feet. As of Thursday, it was about $3.38 per mcf after reaching a high of about $3.70 per mcf in December.
“We had two significant rate decreased in 2016 because of lower than expected natural gas prices,” said Haley Fisackerly, Entergy Mississippi president and CEO.
“Because of that, even with this increase, bills will remain lower than they were in January of last year.”