Entergy New Orleans Reaches Rate Settlement

TL;DR

Entergy New Orleans settled its rate case, expecting a $15.5M annual revenue boost from July 1st.

AI Summary

Entergy New Orleans, LLC, a subsidiary of Entergy Corp., announced on April 18, 2024, that it has entered into a settlement agreement with the New Orleans City Council regarding its electric service rates. The agreement, if approved by the Council, will result in an annual revenue increase of approximately $15.5 million for the company, effective July 1, 2024. This settlement resolves a rate case initiated by the company in October 2023.

Why It Matters

This settlement will impact the electricity bills of Entergy New Orleans' customers and affects the company's revenue stream, pending final approval.

Risk Assessment

Risk Level: low — The filing is a routine regulatory update regarding a rate settlement, which is a common occurrence for utility companies.

Key Numbers

• $15.5 million — Annual Revenue Increase (Expected increase for Entergy New Orleans if the settlement is approved.)

Key Players & Entities

• Entergy New Orleans, LLC (company) — Filer and subject of the rate settlement
• Entergy Corp. (company) — Parent company
• New Orleans City Council (company) — Regulatory body approving the settlement
• $15.5 million (dollar_amount) — Annual revenue increase from the settlement
• July 1, 2024 (date) — Effective date of the revenue increase
• October 2023 (date) — Initiation date of the rate case

FAQ

Key Financial Figures

• $0.01 — red Entergy Corporation Common Stock, $0.01 Par Value ETR New York Stock Exchange
• $116 million — "System Energy") will refund a total of $116 million to Entergy New Orleans, LLC ("Entergy N
• $18 million — ew Orleans") inclusive of approximately $18 million already received by Entergy New Orleans
• $588 million — settlement in principle align with the $588 million global black box settlements reached be
• $98 million — l make further refunds of approximately $98 million to Entergy New Orleans if the settlemen
• $178 million — gy's remaining regulatory liability was $178 million. The $98 million of remaining refunds t

Filing Documents

• etr-20240418.htm (8-K) — 46KB
• 0000065984-24-000037.txt ( ) — 259KB
• etr-20240418.xsd (EX-101.SCH) — 4KB
• etr-20240418_def.xml (EX-101.DEF) — 20KB
• etr-20240418_lab.xml (EX-101.LAB) — 36KB
• etr-20240418_pre.xml (EX-101.PRE) — 20KB
• etr-20240418_htm.xml (XML) — 9KB

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. As a result of the black box settlement discussed in Item 8.01 below, System Energy Resources, Inc. ("System Energy") will refund a total of $116 million to Entergy New Orleans, LLC ("Entergy New Orleans") inclusive of approximately $18 million already received by Entergy New Orleans from System Energy and implement certain prospective changes to the rates it charges to Entergy New Orleans. The settlement terms, including both the black box settlement and the prospective rate changes, are consistent with Mississippi Public Service Commission's 2022 global settlement and Arkansas Public Service Commission's 2023 global settlement with System Energy previously approved by FERC. Entergy affirms its adjusted EPS and credit outlooks. Cautionary Note Regarding Forward-Looking Statements In this current report on Form 8-K, and from time to time, Entergy Corporation ("Entergy"), Entergy New Orleans and System Energy make certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's current financial and operational outlooks; expected impacts to credit metrics and ratings; and other statements of Entergy's, Entergy New Orleans' or System Energy's plans, beliefs, or expectations included in this report. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this report. Except to the extent required by the federal securities laws, neither Entergy nor Entergy New Orleans nor System Energy undertakes any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in su

01. Other Events

Item 8.01. Other Events On April 18, 2024, System Energy, Entergy New Orleans, and additional named Entergy subsidiaries ("Entergy Parties") involved in multiple docketed proceedings pending before the Federal Energy Regulatory Commission ("FERC") reached a settlement in principle with the Council of the City of New Orleans ("City Council") to globally resolve all their actual and potential claims in those dockets and with System Energy's past implementation of the Unit Power Sales Agreement. The settlement in principle also covers the amended and supplemental complaint filed at the FERC in Docket No. EL24-5 on October 18, 2023. Entergy New Orleans expects the Utility Committee of the City Council to advance the agreement to the full City Council on Tuesday, April 23, 2024. The full City Council would then take up the matter on May 2, 2024. The Unit Power Sales Agreement is a FERC-jurisdictional formula rate tariff for sales of energy and capacity from System Energy's owned and leased share of Grand Gulf Nuclear Station to four Entergy Operating Companies: Entergy Arkansas, Entergy Mississippi, LLC ("Entergy Mississippi"), Entergy Louisiana, LLC ("Entergy Louisiana"), and Entergy New Orleans, LLC ("Entergy New Orleans"). System Energy previously settled with the Mississippi Public Service Commission, which has 39.95% of the output from System Energy's share of Grand Gulf and Entergy Arkansas, which has 24.19% of output of System Energy's share of Grand Gulf. The settlements with the Arkansas Public Service Commission, the Mississippi Public Service Commission, and the City Council represent 84% of the System Energy's share of Grand Gulf's output. Thus, with the settlement in principle, System Energy has reduced its overall refund exposure to only the approximately 16% remaining. The terms of the settlement in principle align with the $588 million global black box settlements reached between System Energy and the Mississippi Public Service Commission in 2022 an