Entergy to ‘significantly’ hike rates
Published 12:00 am Thursday, June 19, 2008
NATCHEZ — As if high gas prices were not bad enough, Entergy customers can expect a rate hike in the near future.
The company’s quarterly fuel adjustments have been sent to the Mississippi Public Service Commission for approval, but the new rates have not yet been set, said Stephen Caruthers, Entergy customer service manager.
“It’s hard for me to say right now what a percentage would be but I only feel comfortable saying it’s going to be a fairly significant increase,” he said.
Entergy uses a combination of coal, natural gas and nuclear power to produce electricity and the rising cost of natural gas is the major source of the rising costs.
“Fuel cost is not a profit or loss cost for Entergy, it’s a pass through cost,” Caruthers said. “It’s not like Entergy said we want to make more money so we’re going to make the customer pay more.”
The price increase will not just effect residential customers, Caruthers said.
“This fuel adjustment affects every type of customer from the elderly to a single parent to a small business, even to big industrial type customers,” Caruthers said.
Just like watching how much you drive to combat rising gas prices, you need to watch you electricity at home, Caruthers said, especially air conditioning.
According to an Entergy news release, up to 55 percent of electricity cost can come from air conditioning, which should be used as little as possible in order to reduce costs.
“If that means using more ceiling fans or oscillating fans it’s time to pull those out of the closet,” Caruthers said.
Another way to save money on energy is to insulate your home. This may cost a little more, but it will save money in the long run, Caruthers said.
Erin Meyers, owner of Sun, Moon and Stars, said she has started turning the air conditioning off at night and opening the doors when it is nice outside to save on energy cost. But the upcoming increase still will not be easy to handle.
“It’s going to hurt,” she said. “I don’t know if it’s going to hurt as much as the gas.”
The biggest concern for Meyers is the combination of gas prices and energy cost, which she said may keep people from shopping.
The price increase will also hurt Meyers as a residential customer, especially now that she has two teenagers at home all day, she said.
“My mother used to have a sign,” she said. “If you’re hot take something off. If you’re cold put something on. Touch this thermostat and you die.”
Other residents were more upset about the price increase.
Leslie Lee Hence said the rising price of gas, water and now power is too much for a lot of people.
“It’s just like the lights and the gas bill have gotten outrageous,” Hence said. “The way they’re treating us is just wrong.”