New Orleans, La. – Entergy New Orleans, Inc. today filed the results of its Formula Rate Plan that will result in good news for its electric customers again. For the second time in as many years, the company is asking the New Orleans City Council for permission to reduce electric base rates – this time by $12.8 million.

The filing would mean a total monthly price reduction of approximately $3.72 for typical electric customers using 1,000 kWh per month. Therefore, a typical electric customer bill for the month of May would shrink to under $100 – or from $103.58 to $99.86.

This filing makes for the second electric rate decrease in two years. Beginning in June 2009, Entergy New Orleans customers received electric bills that reflected a $35 million total electric rate decrease, reducing a typical customer’s monthly bill by a total of $6.40.

The 2010 electric rate reduction is due in part to a 9 percent sales growth increase over the two past years. The company believes the sales growth may be in part a result of an increase in customers since the company filed its last rate case July 31, 2008. Since that time the company’s electric customer count grew from 141,000 to approximately 150,000 today.

“At a time when the people in our region face extreme difficulties, Entergy New Orleans is pleased that our work with the City Council set up a rate review process that allows us to pass savings on to our customers in a timely fashion,” said Rod West, president and chief executive officer of Entergy New Orleans.

The company also proposes a modest $2.3 million gas rate adjustment that would help the company meet its cost of providing gas service and maintaining a gas system that has about 65 percent of its pre-Katrina customers. The proposal means a typical combination electric/gas customer will experience a total decrease of $1.75 on the total bill for 1,000 kWh of electricity and 50 ccf of gas usage.

Changes to customer electric and gas rates are expected to take effect in the first billing cycle of October 2010, after the City Council and the public has had an opportunity to review the results.

Entergy New Orleans, Inc. is an electric and gas utility serving Orleans Parish and is a subsidiary of Entergy Corporation. The company provides electricity to more than 150,000 customers and natural gas to more than 96,000 customers in Orleans Parish.

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