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Insights > Wondering What Impacts Your Entergy Louisiana Bill?
Wondering What Impacts Your Entergy Louisiana Bill?
01/30/2020
Does your wallet feel a little lighter after a trip to the grocery store? Probably, and that’s because staples like bread, eggs and apples cost more these days. Basic goods and services like gasoline and cell phones also have increased in price faster than the rate of inflation. But Entergy Louisiana rates, which are among the lowest in the state and nation, have not.
Entergy Louisiana residential rates have declined by 16% over the last 11 years. During 2019 alone, Entergy Louisiana residential customers paid, on average, 7% less when compared to other Louisiana utilities.
What drives the size of your utility bill is the amount of power used each month. The average Louisiana residential customers’ use ranks among the highest in the nation, according to federal energy data.
Despite low rates, the high level of consumption puts the typical Louisiana household bill near the middle of the pack when compared to other states.
While the company continues to make smart and disciplined investments to keep rates low, to better manage your bill and save even more money, it helps to understand some of the charges that appear on your bill and why. Some important items include:
- The energy charge line item, set by the Louisiana Public Service Commission, covers the general cost of providing electric service. For example, the energy charge covers the cost of wires, poles, power plants, and other customer service-related costs, such as service trucks and customer contact centers. The amount of the charge will vary from month to month based on a customer’s usage.
- The fuel adjustment charge will change on your bill from month to month and is the most highly variable item. The charge reflects the actual cost of generation fuel and purchased energy for that billing period. Entergy makes no profit on this, and the charge is passed through to customers as allowed by the Louisiana Public Service Commission.
- The storm restoration charge on your bill represents the monies collected to pay for the financing of the storm restoration costs and storm reserves. Working with the LPSC, we used special bond financing options that are spread over a number of years to save customers millions of dollars. The bonds used to finance hurricanes Katrina and Rita costs have been repaid and are no longer included in the storm restoration line item. Gustav and Ike bond repayments started in 2010 and will expire in 2022. Isaac started in 2014 and will expire in 2026. The amount of this charge will vary from month to month based on a customer’s usage.
- The storm restoration offset line item on your bill represents customer savings in the form of benefits realized because of the special financing approved by the LPSC. Both the storm restoration charge and the storm restoration offset line item are subject to adjustments during the year. This, too, may vary from month to month based on a customer’s usage. You can find more information on storm-related charges here.
- The Municipal Franchise fee is the payment your local government collects from Entergy to serve electricity in your area.
To learn more about the line items that appear on your bill, click here.
There are everyday things you do at home that impact your electric bill as well, such as charge cell phones, cool or heat your home, wash laundry and take a hot shower. Customers can lower monthly electric bills even more by taking steps to reduce energy usage or taking advantage of energy efficiency ideas and products at the Entergy Solutions Marketplace.
To find all types of statistics on electric power, consumption, prices, sales and customers visit U.S. Energy Information Administration website.
