June Electricity Costs Lowest in 6 Years for Entergy Gulf States Louisiana Customers

Entergy offers tips on how customers can reduce electricity bills even lower

June 08, 2009 -- Baton Rouge, La. – Temperatures may be rising, but Entergy Gulf States Louisiana customers can continue to look forward to lower electricity bills this summer.

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June electricity bills for residential customers who use an average 1,000 kilowatt-hours of electricity a month are $72.11, approximately 44 percent less than in August 2008, when higher natural gas prices resulted in electricity costs of $128.46 per 1,000 kWh. The lower fuel costs mean that a typical residential customer is paying around $3.00 in a 24-hour period for electricity.

“Natural gas prices have fallen dramatically, which is welcome news for our customers - particularly as we enter the summer season, when electricity use is typically the highest,” said Renae Conley, president and chief executive officer of Entergy Gulf States Louisiana.

The price of natural gas rose suddenly throughout the spring and summer of 2008, peaking at a cost of more than $13.50 per MMBtu last July. At the beginning of April, however, natural gas prices had dropped to $3.58 per MMBtu. Fuel prices from April are reflected in June electricity bills. The lower fuel costs mean that the fuel adjustment portion of customers’ electricity bills is lower. Additional good news for customers is that fuel prices have continued to remain low, so customers likely will be able to look forward to lower bills than last year throughout the summer. Natural gas prices have continued to fluctuate in the market.

Natural gas is a fuel used to power many of the plants that generate electricity for Entergy Louisiana customers. Entergy does not earn a profit on fuel costs. Fuel costs are passed on to customers at cost through the fuel adjustment charge, dollar-for-dollar, and are audited by the Louisiana Public Service Commission to ensure that utilities do not pay more than necessary for the fuel that is needed.

Even though lower natural gas prices are good news, customers are encouraged to continue to take steps to lower their electricity use. The price of natural gas and other fuels shows up on a customer’s bill as part of the fuel adjustment charge, which is calculated from the price of the fuel used to generate electricity and the amount of power that a customer uses each month. As customers reduce their monthly usage, their fuel adjustment charge – and their total bill – goes down.

“Although electricity bills are significantly lower this summer, we are strongly encouraging customers to continue to take steps to lower their energy use,” said Entergy Gulf States Louisiana spokesman Philip Allison. “Louisiana customers typically use a lot more electricity during the summer months to cool their homes, and excessive use of electricity can still result in a higher bill than expected. Our new Web site, EntergyAnswers.com, has a storehouse of information that will help customers stay comfortable, conserve energy and get the maximum benefit from lower electricity costs.”

“One of the most important steps a customer can take to keep their electricity bills low is to raise the thermostat to 78 degrees,” Allison added. “Every degree cooler than 78 degrees can increase your electricity bill by about three percent.”

Customers can also go to www.Entergy.com to sign up for My Account Online, which allows customers to view and pay their bill, as well as, sign up for other services such as Level Billing. Level Billing can help to lower summer bills by averaging 12 months’ worth of bills so that there are no summer spikes.

Source: Entergy