Planning process is critical to smooth transition
 
LITTLE ROCK, Ark. – Obtaining Arkansas Public Service Commission approval by mid-2012 is critical to ensuring a smooth transition and delivering maximum benefits to customers, witnesses for Entergy Arkansas, Inc. said in testimony filed at the Arkansas Public Service Commission Friday. The filing supports Entergy Arkansas' request to transfer functional control of its transmission facilities to the Midwest Independent Transmission System Operator, Inc, or MISO with a target implementation date of December 2013, when Entergy Arkansas will no longer participate in the Entergy System Agreement.

"Entergy Arkansas will exit the System Agreement in December 2013," said Hugh McDonald, president and chief executive officer of Entergy Arkansas, Inc. "This is not a matter of conjecture or uncertainty – Entergy Arkansas' obligations under that contract will terminate, but so will its right to operate as part of the coordinated Entergy Electric System."  McDonald asserted that Entergy Arkansas needs approximately 18 months to integrate into MISO to continue to provide reliable electric service to our customers.  And before it can proceed fully with that integration process, Entergy Arkansas needs an order from the APSC approving the proposed move.

Entergy Arkansas proposed integrating with MISO last May after extensive analysis showed that joining MISO is the best option for its customers following the company's exit from the System Agreement. The System Agreement is a contract that governs how the various Entergy operating companies share generation and transmission resources and costs and coordinate dispatch of their generating units.  If approved, the move to MISO is expected to result in an estimated $263 million in net present value savings over ten years for Entergy Arkansas customers.

"The original estimated benefits to customers have consistently held up throughout this process," added McDonald. "The number of outstanding issues and opposing parties continues to decline as the facts support MISO as our path out of the System Agreement."

Friday's testimony referenced the support of the Arkansas Attorney General's office for the company to exit the System Agreement and join a regional transmission organization (RTO). The witness for the AG's office testified that it is likely at this point the MISO RTO is the only one Entergy Arkansas can successfully join prior to its exit in December 2013.

The Arkansas Electric Energy Consumers, a group representing Entergy Arkansas' largest customers, acknowledged in its most recent testimony that Entergy Arkansas' retail customers will be best served by the company's joining MISO. A number of additional interveners including the Arkansas Electric Cooperative Corporation and the electric departments for the cities of Jonesboro, Conway, West Memphis, and Osceola have stated they agree there are benefits to participation in a Day 2 Market and do not oppose Entergy Arkansas' joining MISO.

In its application pending before the APSC, which is supported by its witnesses' testimonies filed Friday, Entergy Arkansas is asking the commission to approve its request to transfer functional control of its transmission facilities to MISO, which would allow Arkansas electricity consumers to begin enjoying the meaningful benefits identified in multiple evaluations.

"Given the many facts that are known, the many concerns that have been dispelled, and the few uncertainties that remain today, I see no reason that Entergy Arkansas would not be able to integrate into MISO by December 19, 2013, assuming the Commission issues an order by mid-2012," McDonald stated.

Entergy Arkansas, Inc. provides electricity to more than 692,000 customers in 63 counties. It is a subsidiary of Entergy Corporation. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas.