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Our Utility
Regulation

Over the past several years, we have built constructive relationships with government regulators that have enabled the development of progressive regulatory mechanisms. Entergy’s stakeholders are the beneficiaries, as the ability to recover costs at the same time customers begin to receive the benefits of major investments enables us to deliver on commitments. Regulators recognize that mechanisms such as formula rate plans are efficient, less costly for customers, and help facilitate the benefits valued by customers. Significant regulatory advances in the past few years include:

  • Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans have formula rate plans with forward-looking test year features. Entergy Mississippi and Entergy New Orleans use known and measurable changes to recover planned costs, and Entergy Arkansas adopted a full forward test year.
  • Entergy Louisiana, which for many years has had a formula rate plan with a mechanism for timely recovery of generation investments, received approval for a similar rider to recover transmission investments. In addition, Entergy Louisiana received approval to recover investment in advanced meters through a customer charge.
  • In Texas, we now have two riders for more timely recovery of distribution and transmission investments. Over the past two years, the approval processes for rate changes through these riders have become timelier. Entergy Texas also received approval for a customer charge to begin recovering advanced meter infrastructure investments in January 2019. In May 2019, new legislation empowered the Public Utility Commission of Texas to establish a similar rider for generation investments, an important milestone that helps us earn closer to the allowed return.

As a result of collaborative, transparent efforts with regulators, 90 percent of our 2019–2022 capital plan is expected to be recovered through timely, progressive regulatory mechanisms. This clear line of sight to execution of the capital plan, on time and on budget, combined with progressive recovery mechanisms that ensure timely recovery of these investments, support our ability to provide steady, predictable growth in earnings and dividends.