7/29/2019 Louisiana Rate Case Fact Sheet

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Why are Entergy Louisiana and Entergy Gulf StatesLouisiana seeking rate increases?

Since2004thecompaniesbaserateshave,underanorderoftheLoui-

sianaPublicServiceCommission,beensetusingaFormulaRatePlan

approvedbytheLPSC.ThecompaniesFormulaRatePlansexpiredwiththeirlingsin2012,andtheLPSChasrequiredthateachcompanylea

ratecase.

Thecompanieshavemadecapitalinvestmentsintheelectricalsystem

tocutfuelcosts,improvereliabilityandmeetstatewidepowerdemand

withclean,efcientandaffordableelectricity.Theseinvestmentsare

reectedintheratecase.

Partoftherateincreasealsowillpayforrepairsandrestorationofthe

electricalinfrastructureincaseofafutureemergency.

Mostimportantly,thedemandsbeingplacedontheelectricgridtoday

arevastlydifferentandgreaterthanthoseforwhichitwasdesigned

andbuilt.Thenexttwodecadeswillrequireextraordinaryinvestments

intheU.S.electricinfrastructure.Toensurethatweareablemaintain

healthycompaniesthatcancontinuetoaffordablyprovidesafe,clean,

reliablepowertoourcustomersintothefuture,Entergyispursuing

smartsolutionstoday:joiningtheMidwestIndependentTransmission

SystemOperator,Inc.andtheproposedspin-offandmergerofEnter-

gystransmissionbusinesswithITCHoldingsCorp.Makingthesecritical

changeswillrequiresomeadjustmentstothewayEntergyLouisiana

andEntergyGulfStatesLouisianarecovercosts.

Why does Entergy need to make these business modelchanges, and how will they beneft customers?

Louisianaspopulationandeconomicopportunitiesaregrowingyearby

yearandaredrivenbydependable,affordableelectricpower.Electricity

powersthenecessitiesandconveniencesofourcustomerslives

everythingfromtelevisionstosmartphones,airconditionerstocooktops,

grocerystorestomanufacturingplants.Butasdemandforpowergrows,

weather,maintenanceschedules,generatingcostsandotherfactorscre-

ateacomplexdailyinterplaybetweenelectricitysupplyanddemand.Tobestmanagethatsupplyanddemand,Entergyhasreceived

approvalfromtheLPSCtojointheMidwestIndependentTransmissionSystemOperator,Inc.BetterknownasMISO,theregionaltrans-

missionorganizationhasafootprintfromCanadatotheGulfofMexico,andwilldriveefciencyandreliabilityandprovideaprojected

$430millionto$575millioninsavingsforLouisianacustomers.

TobuildonMISOmembershipandprovidethebenetsofexpertise,nancialstrengthandenhancedreliability,Entergyalsoisseeking

tospinoffthenmergeitstransmissionbusinesswithITCHoldingsCorp.,aleadingindependent,transmission-onlycompany.Upgrad -

ingandmodernizingtheU.S.electricgridwillrequiresignicantcapitalexpendituresindustryinfrastructureinvestment,driven

byreplacementofexistingassets,environmentalregulationsandothercompliancerequirements,thatcouldrangefrom$1.5trillion

to$2trillionbetween2012and2030.Thecapitalinvestmentsrequiredoverthenextdecadewill

drivecostshigherforcustomers,butEntergyispursuingtheITCtransactiontocreateaseparate,

independenttransmissioncompanythatwilldeliverfocusedexpertise,enhancereliabilityanden -

ablegreaternancialstrengthandexibilitytomakethenecessaryinvestmentsintothefutureas

affordablyaspossible.

RATE CASE FACT SHEET

How do our rates compare with otherstates?

Louisiana - 2012

8.35cents/kWhNational Average - 2012

11.91cents/kWhIn 2012, our customers averaged about

$3.50/dayto power their homes.

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RATE CASE FACT SHEET 2

How will the rate case impact bills?EntergyLouisianaandEntergyGulfStatesLouisianaeachhaveledwiththeLPSCtwopossiblescenariosforrateincreases.Therst

scenarioplansforEntergytojoinMISOandspinoffthenmergeitstransmissionbusinesswithITCHoldings.Thesecondscenarioas -

sumesEntergyonlyjoinsMISO.Theimpacttobaseratesandcustomerbillsaredifferentdependingonthescenario.

What factors go into electricitycosts?

Manyfactorsincludingfuelcosts,system

improvementsandenvironmentalconcerns

affectthecostofproducingelectricityand,

inturn,thepriceyoupay.

AtEntergy,wearecontinuouslybalancing

thesefactorstoprovideyouwithclean,safe,

reliableelectricityatthemostreasonable

ratespossible.Thatsourcommitmenttoall

ourcustomersouremployees,neighbors,

businessesandthecommunitiesinwhichwe

liveandwork.

Aspartofthatcommitmenttomeetyour

powerneedstodayandintothefuture,

EntergyLouisianaandEntergyGulfStates

LouisianahaveaskedtheLouisianaPublic

ServiceCommissionforachangeinourelec -

tricrates,includinganincreaseinresidential

ratesthat,ifapproved,wouldlikelygointoeffectinFebruary2014.

What are the next steps?TheLPSCmustrenderafulldecisiononthe

ratecaseapplicationandproposedrate

schedulewithin12monthsaftertheeffective

lingdate,whichwasFeb.15,2013.

Hereisanoverviewoftheratecaseprocess:

First,wehavetodemonstratetothe

LPSCexactlywhytheincreaseinratesis

needed. Thecommissionthoroughlyreviewsour

requestandholdshearingstoallowcus -

tomerstocomment.

Weanticipatethatlaterthisyear,thecom-

missionwillconducthearingsandconsider

ourwrittenandoraltestimony,along

withdifferingviewpointsrepresenting

customergroupsandotherstakeholders.

SCENARIO 1: MISO and ITC

Entergy Louisiana, LLC

Residential Customer(using 1,000 kWh/month)

$7.56 increase/month 7.7% increase/month

Small General Service Customer(using 12,500 kWh/month)

$76.81 increase/month 5.6% increase/month

Large General Service Customer(using 500,000 kWh/month)

$1,918.13 increase/month 5.1% increase/month

Entergy Gulf States Louisiana, L.L.C.

Residential Customer(using 1,000 kWh/month)

$2.30 increase/month 2.6% increase/month

Small General Service Customer(using 5,000 kWh/month)

($13.27) decrease/month (2.5%) decrease/month

Large General Service Customer(using 250,000 kWh/month)

$189.85 increase/month 1.1% increase/month

SCENARIO 2: MISO Only

Entergy Louisiana, LLC

Residential Customer(using 1,000 kWh/month)

$6.80 increase/month 6.9% increase/month

Small General Service Customer(using 12,500 kWh/month)

$86.72 increase/month 6.4% increase/month

Large General Service Customer(using 500,000 kWh/month)

$2,028.25 increase/month 5.4% increase/month

Entergy Gulf States Louisiana, L.L.C.

Residential Customer(using 1,000 kWh/month)

$2.41 increase/month 2.7% increase/month

Small General Service Customer(using 5,000 kWh/month)

$5.13 increase/month 1.0% increase/month

Large General Service Customer(using 250,000 kWh/month)

$262.84 increase/month 1.6% increase/month

These tables show the average impact proposed for each customer class. The specific increase or

decrease to individual customers will vary depending on the rates they pay and other factors.