LITTLE ROCK -- Entergy Arkansas customers can expect to save an estimated $94 million in 2021 from the utility's membership in the Midcontinent Independent System Operator, a regional transmission organization, the utility announced in a news release.
In a filing with the Arkansas Public Service Commission last week, Entergy Arkansas' proposed customer credit is $19.6 million more than customers saved in 2020.
On a residential bill, unless itemized as a separate line item through customer preference, the MISO credit savings are reflected in the energy charge line item. Following approval by the Arkansas Public Service Commission, an average residential customer using 1,000 kWh per month will see a 25 percent increase in the MISO credit. This will lower their bill an additional $1.11, bringing the total MISO credit to $5.55 a month, the release said.
Over the past few years, "Entergy Arkansas has made significant investments in generation, transmission and distribution upgrades that have helped lower fuel and energy rates for customers. From 2014 to 2019, MISO membership saved Entergy Arkansas customers approximately $298 million," it said.
"Joining MISO in 2013 was a very good decision for our customers in Arkansas, as well as customers throughout the Entergy system," Kurt Castleberry, director of resource planning for Entergy Arkansas, said in the release. "Entergy's membership in MISO has saved Entergy customers in all five operating companies about $1.5 billion over six years."
MISO is an independent, not-for-profit organization that delivers electric power across 15 U.S. states and the Canadian province of Manitoba. MISO operates one of the world's largest energy markets with more than $29 billion in annual gross market energy transactions, the release said.
Since Entergy joined MISO in December 2013, MISO has guided the dispatch of power from Entergy's generating facilities and had a hand in planning Entergy's transmission expansion and improvements. In addition, MISO operates markets for the purchase and sale of wholesale energy and other products.
"The estimated savings realized is largely because power plants are dispatched more efficiently on the transmission grid, resulting in a lower cost of delivered energy. Significant savings also arise from MISO members sharing generation reserves across the organization's footprint, producing long-term benefits for customers," it said.
"Our membership in MISO has been a highly effective tool in helping us control costs and keep our rates among the lowest in the nation." Castleberry said.