Entergy Texas, Inc. recently announced a fuel-related refund to customers that will show up as a credit on bills for three months, beginning in January.

The refund totals nearly $88 million and reflects an over-recovery of fuel costs from April through October of this year. As a result of the refund, the average, 1,000 kilowatt-hour residential bill will be lowered by $29.81 per month for January, February and March.

Per rules established by the Public Utility Commission of Texas, Entergy Texas determines what it will charge customers for fuel twice a year, with the amount based on fuel costs at that time. The recovery charge then stays in place for the next six months. Fuel prices, however, fluctuate on an almost daily basis and so the company may not recover enough or may recover too much. When too much is recovered, customers receive a refund in the form of a credit that lowers their bill.

Effect of Fuel Refund on Average 1,000 Kilowatt-Hour Electric Bill

Month       Non-Fuel Portion of Bill  Fuel Portion of Bill  Total Bill
Dec. 2009        $63.70                            $47.77                $111.47
Jan. 2010         $63.70                             $17.96                $81.66

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