Bill reductions coming in phases
St. Charles Parish Entergy customers will see a savings of about $1.1 million through the end of this year thanks to a series of rate reductions under an agreement approved by the Louisiana Public Service Commission.
The first of the reductions will come in May as a result of $210 million in federal tax reform-related savings, $105 million of which will be returned to all Entergy customers over the next eight months, according to Entergy spokesman Mike Burns. The remaining half of the savings will be returned over the following four years.
A typical St. Charles Parish residential customer using 1,000 kilowatts per month will see a $4.20 decrease in their monthly bill from May through December. In September, this same customer will see another $2 per month drop in their bill as a result of additional credits tied to the Tax Cuts and Jobs Act approved by Congress in late 2017.
“Along with customer refunds, tax reform also helps provide us the ability to invest in modernizing our system for the benefit of customers while maintaining some of the lowest rates in the country,” said Phillip May, president and CEO of Entergy Louisiana.
The reductions come as result of an agreement approved by the LPSC that extends and modifies Entergy Louisiana’s Formula Rate Plan for three more years and will provide a mechanism for determining the rates Entergy Louisiana charges through August 2021.
Burns said the extension provides for rate stability and includes mechanisms addressing federal tax changes that better reflect the benefits and costs of investments the company made on behalf of its customers.
Entergy is also set to bring in about $130 million in annual tax savings to offset the cost of upgrading infrastructure.
Customers using 1,000 kilowatts a month will also see an additional reduction of about $4.15 beginning in October when recovery of storm restoration costs associated when hurricanes Rita and Katrina are subtracted.