Entergy announces amount for fuel refund
Beaumont, Texas – A fuel refund announced for Entergy Texas, Inc. customers late last year has been finalized with the impact to customer bills more than originally expected.
Entergy Texas, Inc., the Public Utility Commission of Texas and other stakeholders ironed out details of the refund which will cover over-recovery of fuel costs for December 2010 through December 2011, bringing the total refund up to $67 million.
As a result, customers can expect to see a refund of $21.70 reflected on bills each month in March, April and May.
“Fuel costs have remained lower over the past year which means it isn’t costing us as much to purchase fuel to generate electricity,” said Joe Domino, president and chief executive officer, Entergy Texas, Inc. “Fortunately, the economy is beginning to improve; however, many of our customers are still struggling with higher prices or even joblessness. We are glad to be able to pass along our savings to customers in the form of a fuel refund.
Per PUCT rules, Entergy Texas determines twice a year what it will charge customers for the fuel it uses to generate electricity. The amount charged is based on fuel costs at that time. The recovery charge stays in place on bills for the next six months. Fuel prices, however, change frequently, so the company may not recover enough of what it paid for fuel or it may recover too much.
When too much is recovered, customers receive the refund through their bills. Entergy Texas does not earn a profit on fuel expenses and only passes actual fuel costs through to its customers. The PUCT must approve all fuel charges.
Entergy Texas, Inc. delivers electricity to more than 400,000 customers in 27 counties. It is a subsidiary of Entergy Corporation. Entergy is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas.