Threat of Permanent Utility Rate Increases Looms
By: Source: AARP.org Date Posted: 2006-12-22 13:53:00-05:00
In an effort to combat skyrocketing utility rates in Louisiana, AARP filed a motion Dec. 5, seeking to intervene in a case before the Public Service Commission (PSC). Entergy Gulf States, Inc. and Entergy Louisiana, Inc. filed a joint application to seek recovery for damages caused by Hurricanes Katrina and Rita. If granted, the move could mean Louisiana residents will face up to $800 million in utility rate increases.
"Many Louisiana residents live on a fixed income and with more than half a million AARP members in the state, you can see why this issue is important to us," Julia Kenny, AARP Louisiana, Director for Government Relations said. "Any increase in utility bills diverts dollars from housing, food and medical care to name a few. This is unacceptable for folks living on a fixed income. Haven't Louisiana residents been through enough already?"
The proceeding was initiated in December 2005 by the joint application of Entergy Gulf States, Inc. and Entergy Louisiana, Inc. to recover an estimated $800 million in costs after the hurricanes. Interim rate relief was granted by the PSC in March 2006, but the final hearing on permanent rate relief is not scheduled until April 2007. Accordingly, AARP is asking to be at the table during the decision-making process and is filing a motion to ensure that Louisiana residential utility customers are represented.
"If AARP is not allowed at the table, there won't be anyone representing the residential customers," said Mike Twomey, attorney for AARP. "Of course the utilities are represented as well as a number of their oil, chemical and large industrial customers. Residential customers are the largest customer class and they deserve the right to challenge the revenue increases, too. Additionally, it is critical that residential customers, including AARP members, pay only their fair share of storm recovery costs."
AARP successfully challenged Florida utilities requested storm recovery, saving customers hundreds of millions of dollars. Hearings in Louisiana begin on April 24, 2007. In the meantime, AARP is working with citizens, legislators, stakeholders and members to ensure fair utility rates in Louisiana.
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