Entergy Arkansas files formal request to join MISO with completion by December 2013; company projects deal will yield up to US$228M over 10-year period

Tracy McDonald

LITTLE ROCK, Arkansas , November 28, 2011 (press release) – New Transmission Arrangement Would Benefit Customers, Economy

Entergy Arkansas, Inc. took another step toward fulfilling its plan for meeting future power demands Monday by filing a formal change of control request with the Arkansas Public Service Commission. The company's request is part of the larger plan to join a regional transmission organization, the Midwest Independent Transmission System Operator, or MISO.

Entergy Arkansas is seeking to transfer functional control of its transmission facilities to MISO with a target implementation date of December 2013.

Initially announced in April, Entergy Arkansas' decision to join MISO followed extensive study of various alternatives to affordably and reliably meet the long-term energy needs of its customers. Entergy Arkansas projects net benefits of $170-$228 million in terms of net present value over a ten-year period by joining MISO by itself. The savings to Entergy Arkansas would be even more if all the Entergy operating companies join MISO. The savings are primarily the result of MISO's large, more efficient marketplace.

Joining MISO will also provide a clear path for Entergy Arkansas after it terminates its participation in the System Agreement. The System Agreement is a contract that governs how the various Entergy operating companies share generation and transmission resources and costs.

After December 2013, Entergy Arkansas will still be a subsidiary of Entergy Corporation, but will no longer be under the contract that, pursuant to a 2005 Federal Energy Regulatory Commission ruling, has required Entergy Arkansas customers to make equalization payments to out-of-state customers for the past five years.

"Our proposal for Entergy Arkansas to join MISO is monumental for our customers," said Hugh McDonald, president and chief executive officer of Entergy Arkansas, Inc. "It provides the answer to a commitment we made to customers in 2005 to terminate Entergy Arkansas' participation in a contract that simply created too much uncertainty and litigation risk for our customers and company.

"MISO membership will also provide our customers with a reliable, cost-effective option for operations once Entergy Arkansas exits the System Agreement. Customers will obtain the benefits of a combined operation of a larger pool of power resources across an even larger footprint, while also maintaining access to our low-cost, clean and reliable power resources for many decades to come."

MISO operates an electrical grid across 12 states. With the addition of Entergy Arkansas and the other Entergy operating companies, MISO will reach from Canada to the Gulf of Mexico.

Entergy Arkansas, Inc. provides electricity to 697,000 customers in 63 counties. Entergy Corporation 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.

The Midwest Independent Transmission System Operator is a non-profit 501(C)(4) organization that ensures reliable operation of, and equal access to, interconnected, high-voltage power lines in 12 U.S. states and the Canadian province of Manitoba.

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