Within the next three months Entergy customers will see a five to seven dollar monthly increase in electric costs.
Roughly three and a half dollars of that increase will kick in on your July bill, and Entergy Spokesperson Lea Sabatini says that will go towards a new 869 million dollar St. Charles Power Plant.
“It is the most efficient power plant that Entergy Louisiana has in it’s fleet, which means that increase in rates will be offset by gas prices.”
The June rate hike will generate 109.5 million dollars in one year.
The rest of the rate increase will begin in September and is related to a steady reduction in federal tax credits that were included in Tax Cuts and Jobs Act. Sabatini says those tax credits are set to get smaller every year.
“The reason that is was so large at the beginning (2018) was because we wanted to give the maximum amount that we could to our customers that first year out, but that is an ongoing savings our customers will see.”
The tax credits saved 140 million dollars for customers in 2018, and have dropped to 115 million this year. By 2020, that number will plummet to 55 million in savings.
Sabatini says these kinds of rate increases are necessary to pay for more efficient facilities, which will more than pay for themselves in the long-term.
“They are going to help alleviate congestion, help lower bills overtime because they are more efficient and help attract new business to the state of Louisiana.”
