LPSC Approves Entergy's Proposed Move to MISO

BATON ROUGE, La., May 23, 2012 /PRNewswire/ -- Louisiana electricity customers are one step closer to saving a projected half a billion dollars or more following the Louisiana Public Service Commission's decision supporting Entergy Louisiana, LLC's and Entergy Gulf States Louisiana, L.L.C.'s proposal to join a large regional transmission organization.

The LPSC unanimously approved today the joint application of the two companies to join the Midwest Independent Transmission System Operator, Inc. or MISO. Louisiana is the first state in which approval has been given to Entergy operating companies to transfer functional control of their transmission facilities to the RTO. Subject to carefully considered conditions, the proposed integration into MISO is expected to occur in December 2013.

The RTO facilitates the buying and selling of electricity, while continually balancing supply and demand, managing network congestion and creating a robust, competitive market for industry participants. MISO, which oversees transmission planning for its members, is the nation's first regional transmission organization and one of its largest.

Each of the six utility operating company subsidiaries of Entergy Corporation, which do business in Arkansas, Louisiana, Mississippi, New Orleans and Texas, has filed for similar approval with its respective regulator to join MISO.

"The LPSC's determination today confirms over two years of study and analysis on the part of our companies and many others," said Bill Mohl, president and chief executive officer of Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C.  "Working with our commission through this matter has been an important and critical step in seeing that our companies meet the future energy needs of our customers in a reliable and affordable manner."

A May 2011 analysis showed that joining MISO is expected to result in net benefits to customers of the two companies, collectively, of $430 million to $575 million on a net present value basis based on a study period of 2013 to 2022. The projected savings are largely attributable to MISO's organized power markets, which allow MISO to optimize the dispatch of all generating units within its area, whether owned by the Entergy operating companies or other MISO members. MISO currently operates across 11 states and one Canadian province. With the addition of the Entergy operating companies to its membership, MISO will stretch from Canada to the Gulf of Mexico.

"Joining MISO is expected to reduce costs and improve reliability for our customers," Mohl said. "Let's credit the LPSC for its leadership and forethought and its willingness to get out front and become the first of the Entergy region's retail regulators to approve this change of control."

Mohl said the companies will now continue to pursue the planning and implementation that will allow them to capture the benefits projected for their customers.

Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. serve more than one million customers. With operations in southern, central and northeastern Louisiana, the companies are part of the Entergy electric system serving 2.8 million customers in Louisiana, Arkansas, Mississippi, and Texas.

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In this news release, and from time to time, Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. make certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Except to the extent required by the federal securities laws, Entergy Louisiana and Entergy Gulf States Louisiana undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.           

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy Corporation's Form 10-K for the year ended December 31, 2011, (ii) Entergy Corporation's Form 10-Q for the quarter ended March 31, 2012 and (iii) Entergy Corporation's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy Corporation and its subsidiaries; (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this presentation and subsequent securities filings and (g) risks inherent in the proposed spin-off and subsequent merger of Entergy Corporation's electric transmission business into a subsidiary of ITC Holdings Corp. Entergy Corporation cannot provide any assurances that the spin-off and merger transaction will be completed and cannot give any assurance as to the terms on which such transaction will be consummated. The spin-off and merger transaction is subject to certain conditions precedent, including regulatory approvals and approval by ITC Holdings Corp. shareholders.

SOURCE Entergy Corporation