Beaumont, Texas – Entergy Texas, Inc. today filed a rate case with the Public Utility Commission of Texas requesting increases in funding to recover the company’s investments in power lines and plants as well as money spent to purchase power.

The case also calls for revisions in the company’s annual depreciation rates, based on a new depreciation study the company conducted at the direction of the PUCT.

If approved, the additional funds would be used to ensure Southeast Texans will have a robust electricity infrastructure and adequate power.

Entergy Texas seeks an annual increase of $198.7 million, which represents a 12.7 percent total bill increase for all classes of customers.

A key reason for the requested increase is to ensure funding for the company to strengthen its transmission, distribution and generation infrastructure. Entergy Texas completed $86.5 million in transmission capital projects and another $290 million in distribution capital projects between April 2007 and June 2009. Projects totaling $620 million are planned over the next three years. This will bring the company’s infrastructure investments to $1.6 billion since 1999. The proposed improvements will include storm-hardening measures and environmental compliance projects.

Another important component to Entergy Texas’ rate case proposal is a charge that would be adjusted regularly to more immediately reflect increased or decreased costs of purchasing power. Buying power from outside suppliers is an important part of ensuring a sufficient supply of electricity for customers. Purchasing power can be more efficient and cost-effective than building and maintaining generating facilities. As with current fuel costs, the purchased power charge reflects no markup for Entergy Texas.

The rate case also includes a request for the PUCT to consider changes in the way rates are set for Entergy Texas. The company is seeking to streamline the traditional rate making approach to make it more efficient, more certain and less costly. This “formula” rate setting would still require full oversight and approval by the PUCT.

Another important component of the streamlined rate making approach is the implementation of a transmission cost recovery factor or tariff. The tariff, which is already in place for utilities within the Electric Reliability Council of Texas, would allow more timely recovery of the costs of future transmission-related improvements. It is authorized by the Public Utility Regulation Act, amended this year to apply to Entergy Texas.

“Entergy Texas is committed to making certain our electric system is fully prepared to meet the demand for service in Southeast Texas,” said Joe Domino, president and chief executive officer, Entergy Texas, Inc. “We are also committed to continuing our efforts to help customers with their bills through our energy efficiency programs that bring conservation and weatherization projects to homes, businesses, schools and governmental agencies throughout Southeast Texas. These programs have reduced demand by 75 megawatts a year, enough electricity to power 40,000 homes a year.”

Domino noted that, in the next few months, Entergy Texas customers will benefit from a $90 million fuel refund and the return of another $110-$120 million in production credits, a credit designed to equalize production costs among Entergy’s utility companies.

Entergy Texas, Inc. provides electricity to more than 400,000 customers in 27 counties. It is a subsidiary of Entergy Corporation. Entergy is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $13 billion and approximately 14,700 employees.

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Entergy Texas’ online address is entergy-texas.com