Late fees were previously set at a staggering 5% of the bill leading ELL to collect far more than national peer electric utilities in late fees. The unopposed settlement reduces those late fees to 1.5% of the bill, a 70% reduction. Additionally, residents with Smart Meters will no longer face disconnection or reconnection fees.
The Alliance for Affordable Energy is also pleased to see the level of reporting Entergy has committed to, including the number of disconnects and the number of accounts receiving energy assistance by zip code which will allow for more targeted support by way of energy efficiency upgrades and promotion of energy assistance programs. This data will be utilized by a newly formed Low Income Affordability Working Group to identify potential programs to mitigate affordability and arrearage concerns, and maximize the deployment of federal funding available for weatherization and energy efficiency programs or services for low-income customers.
said Jessica Hendricks, State Policy Director with the Alliance for Affordable Energy.
According to John Howat from the National Consumer Law Center, “Utility late fees in Louisiana have historically been the highest in the nation. This settlement, which provides a 70% reduction in the late fees and elimination of most disconnection and reconnection fees charged by Entergy Louisiana, will particularly benefit those who struggle most to make ends meet.”
While ELL residential customers will see an annual increase of roughly 1.8% and Entergy Gulf States (EGSL) customers can see an annual increase of 3%, Entergy has committed to improving their reliability standard requirements by aligning their System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) score requirements closer to the national average, far better than the current Louisiana requirements.
ELL filed an application for an increase in rates in September 2023 through either a Formula Rate Plan (FRP) extension or rate review. The Alliance fully participated in the proceeding and subsequent settlement negotiations. The utility’s initial asks were for an additional $173 million for the former or $430 million for the latter. This settlement agreement pairs the new late fees and reporting policies with bill credits from agreements the Commission staff made with Entergy to resolve 20 different cases surrounding the Grand Gulf nuclear plant in Mississippi.
