The New Orleans City Council Utility Committee on Nov. 12 recommended approval of Entergy New Orleans and Entergy Louisiana’s proposal to move to the Midwest ISO (MISO).
The item moves to the council’s consent agenda and will be voted on at the council’s full meeting on Nov. 15, Entergy added.
The recommendation is based on a stipulation and settlement agreement by the city council advisors, Entergy New Orleans, Entergy Louisiana and MISO.
Charles Rice Jr., president and CEO of Entergy New Orleans, said in the statement that the committee’s action “represents a significant step forward in our efforts to ensure a robust, efficient electrical system that serves the future of” New Orleans.
“Yesterday’s action by the Utility Committee is a big step for electric customers throughout New Orleans,” Aldie Warnock, senior vice president of external affairs for MISO, told TransmissionHub on Nov. 13, adding that Entergy New Orleans’ move to MISO will result in greater reliability and lower costs for customers throughout New Orleans.
“We appreciate the utility committee’s review and approval of Entergy’s application and look forward to final action by the City Council,” Warnock said.
The companies filed a report detailing the expected benefits of joining MISO in May 2011 and last fall filed its request to transfer functional control of its transmission system to MISO.
Entergy also said that the analysis supporting the filing projected the move would save Entergy New Orleans customers about $46m on a net present value basis based on a study period of 2013 to 2022. Per the same analysis, Entergy Louisiana customers in Algiers are expected to realize their share of a projected $397m in total savings as a result of the move to MISO.
Each of the six utility operating company subsidiaries of Entergy (NYSE:ETR), which do business in Arkansas, Louisiana, Mississippi and Texas, have filed similar transfer of control requests with its respective regulator to join MISO. Regulators in Arkansas, Louisiana and Texas have approved the requests there, subject to conditions similar to those of the New Orleans settlement agreement, Entergy added.