Print
E-mail
Comment
Shenandoah approves new electricity rate
By JAKE MUONIO
Shenandoah has joined with most of Entergy Texas’ customers to support an increase in the electrical utility’s base rate.
The existing rate, which does not include fuel surcharges, has been at its current rate since 1991.
“I think that the customers see that a company can’t go for 17 years without some kind of rate relief,” said Lora Steen, Entergy’s customer service manager for south Montgomery County, “especially with the way we’re growing in South County. They don’t want the rate increase, but everything else is going up and they understood that.”
Entergy originally proposed, in September 2007, a $112 million increase in the amount it collected from its customers. That increase, which would have been spread out among all of its customers, would have equated to a $13.62 a month increase for a residence that used 1,000 kilowatts of electricity a month.
Steen said the Entergy’s reasoning behind asking for the increase is that while the fuel adjustment covers the volatility in fuel costs, every aspect of Entergy’s costs have increased since 1991. Among the items whose costs have gone up significantly are poles, power lines and transformers, she said.
A final compromise — which is being called the “Non-unanimous Settlement” — between Entergy and a coalition of communities, including The Woodlands, Shenandoah and all the communities the provider serves, resulted in agreed upon increases of $7.5 million the first year, and a total of $29.5 million annually beginning the second year.
Shenandoah City Administrator Chip VanSteenberg said that while a residential rate increase was inevitable, the city joined the coalition of municipalities to minimize the amount of the increase.
“We have very little regulatory authority in the rate setting arena, that’s why we joined together with the other cities, to make sure our voice was heard,” VanSteenberg said.
Steen said the primary groups objecting to the increase in rates are many industries, other public utilities and the State of Texas. The Woodlands Association joined in the objection to a portion of the increase, which would mean a large increase in the cost of providing power to its street lights.
The Texas Public Utilities Commission, on Nov. 5, ordered Entergy to present a full rate case — including justification of the increase — to the State Office of Administrative Hearings by March 2.
Steen said Entergy could begin charging the increased rate five days after the rate case hearings with the SOAH begin, under the condition that Entergy would have to refund any increased monies it collects if the PUC rules against the final increase.
The non unanimous settlement was reviewed and approved by three administrative law judges with SOAH prior to the PUC rejecting it Nov. 5.
The Shenandoah City Council voted unanimously to accept the negotiated rate increase.
Impact of the increase
For a residential customer using 1,000 kilowatts of power a month, a settled upon increase between Entergy and the local municipalities served by the utility provider would amount to $1.18 a month for the first year and $3.19 a month beginning the second year.
The existing rate, which does not include fuel surcharges, has been at its current rate since 1991.
“I think that the customers see that a company can’t go for 17 years without some kind of rate relief,” said Lora Steen, Entergy’s customer service manager for south Montgomery County, “especially with the way we’re growing in South County. They don’t want the rate increase, but everything else is going up and they understood that.”
Entergy originally proposed, in September 2007, a $112 million increase in the amount it collected from its customers. That increase, which would have been spread out among all of its customers, would have equated to a $13.62 a month increase for a residence that used 1,000 kilowatts of electricity a month.
Steen said the Entergy’s reasoning behind asking for the increase is that while the fuel adjustment covers the volatility in fuel costs, every aspect of Entergy’s costs have increased since 1991. Among the items whose costs have gone up significantly are poles, power lines and transformers, she said.
A final compromise — which is being called the “Non-unanimous Settlement” — between Entergy and a coalition of communities, including The Woodlands, Shenandoah and all the communities the provider serves, resulted in agreed upon increases of $7.5 million the first year, and a total of $29.5 million annually beginning the second year.
Shenandoah City Administrator Chip VanSteenberg said that while a residential rate increase was inevitable, the city joined the coalition of municipalities to minimize the amount of the increase.
“We have very little regulatory authority in the rate setting arena, that’s why we joined together with the other cities, to make sure our voice was heard,” VanSteenberg said.
Steen said the primary groups objecting to the increase in rates are many industries, other public utilities and the State of Texas. The Woodlands Association joined in the objection to a portion of the increase, which would mean a large increase in the cost of providing power to its street lights.
The Texas Public Utilities Commission, on Nov. 5, ordered Entergy to present a full rate case — including justification of the increase — to the State Office of Administrative Hearings by March 2.
Steen said Entergy could begin charging the increased rate five days after the rate case hearings with the SOAH begin, under the condition that Entergy would have to refund any increased monies it collects if the PUC rules against the final increase.
The non unanimous settlement was reviewed and approved by three administrative law judges with SOAH prior to the PUC rejecting it Nov. 5.
The Shenandoah City Council voted unanimously to accept the negotiated rate increase.
Impact of the increase
For a residential customer using 1,000 kilowatts of power a month, a settled upon increase between Entergy and the local municipalities served by the utility provider would amount to $1.18 a month for the first year and $3.19 a month beginning the second year.
Submit a Comment
|
You must be logged in to post a comment.
|
Not yet a registered member?
Click here to become one. Comments to stories and articles on the Web site are not edited or pre-approved before appearing online. Readers posting comments are solely responsible for those comments. Comments must be germane to the story to which they apply. Online comments that are libelous, profane or personally attack another site participant can be reported as abuse using the link provided on each comment. Comments reported as abusive will be reviewed and may be removed from view, as will off-topic comments. BE CIVIL. Individuals continually posting abusive comments to the site may have their registrations revoked. |
