Entergy seeks FERC approval related to merger of two Louisiana utilities

Entergy Services, on behalf of Entergy Louisiana Power LLC (ELP), an entity that is expected to become a public utility during the second half of 2015, asked the Federal Energy Regulatory Commission on Feb. 27 to authorize ELP to sell wholesale electric capacity, energy, and ancillary services at market-based rates and accept its proposed market-based rate wholesale power sales tariff.

ELP will become a public utility upon completion of the business combination of Entergy Gulf States Louisiana LLC (EGSL) and Entergy Louisiana LLC (ELL). In December 2014, EGSL and ELL filed an application with the commission in requesting authorization for the FERC-jurisdictional aspects of a transaction in which EGSL and ELL will combine substantially all of their respective assets and liabilities into a single successor public utility operating company, ELP. With this Feb. 27 application, ELP requests acceptance of its proposed Tariff so that it may undertake market-based rate wholesale power sales upon becoming a public utility.

Upon its formation, ELP will be an indirect subsidiary of Entergy Corp. (NYSE: ETR), a holding company that owns traditional franchised public utilities and market-regulated power sales affiliates that are located primarily in the Southeastern United States. ELP will be one of several public utility companies that are collectively referred to as the “Entergy Operating Companies.”

EGSL generates, distributes, and sells electric power to retail customers in portions of Louisiana and also provides natural gas utility service to customers in the Baton Rouge, Louisiana, area. EGSL also currently serves one wholesale requirements customer in Louisiana. ELL also generates, distributes, and sells electric power to retail customers in portions of Louisiana.

The filing noted that an outside consultant who did the market power analysis for this application assessed the 2014 retirement of the Robert Ritchie 2 generating  facility (Ritchie 2) owned by Entergy Power and ELL’s commencement of operations of its new Nine Mile Point Unit 6 generating facility (Nine Mile 6), also in 2014. The retired Ritchie 2 facility had a generating capacity of 554 MW, and the new Nine Mile 6 generating facility has a capacity of 550 MW.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.