Entergy plans 1% rate hike in 2009 if legislation OK’d in Mississippi

Further increase may follow once new plant is under construction

Entergy officials said Monday they hope to seek a rate increase in 2009 if legislation is approved that eventually could allow utility companies to charge ratepayers before some plants are built.

Rates would be hiked 1 percent during the preconstruction phase of Entergy's $5 billion nuclear plant, officials said Monday at a meeting with The Clarion-Ledger editorial board. They said they didn't know how much rates would rise during construction.

Building an additional nuclear plant next to Grand Gulf Nuclear Station in Port Gibson would make future costs of electricity more affordable than relying on natural gas, officials said.

But the "pay-as-you-go" financing mechanism also being sought by Mississippi Power faces hurdles from legislators and Public Service Commission members concerned ratepayers would be stuck with the tab if construction plans fall through.

Legislation that would grant commissioners authority to consider incremental rate hikes for Entergy's facility and Mississippi Power's $1.8 billion coal plant in Kemper County cleared the Senate floor last week. But a key House leader said Monday he's not sure he'll bring up a companion bill by Thursday's deadline.

"I just don't think ratepayers should bear 100 percent of the burden," Northern District Commissioner Brandon Presley said. "Somewhere, utilities have to look at investing themselves."

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