(WAFB) - Entergy customers in Louisiana will see a series of rate reductions throughout 2018 thanks to an agreement approved Wednesday by the Louisiana Public Service Commission.
The first reduction will happen in May as a result of $210 million in federal tax reform-related savings. Of that money, $105 million will be returned to customers over the next eight months. The remaining portion of the savings will be returned to customers over the next four years. As a result, an average residential customer that uses 1,000 kWh per month will see about a $4.20 decrease on their bill from May through December.
A second reduction of $2 per month on residential bills will happen in September of 2018 as a result of additional credits tied to the Tax Cuts and Jobs Act approved by Congress late last year. Entergy will also be enjoying about $130 million in tax savings to offset the cost of upgrading infrastructure.
"Along with customer refunds, tax reform also helps provide us the ability to invest in modernizing our system for the benefit of customers while maintaining some of the lowest rates in the country," said Phillip May, president and CEO of Entergy Louisiana.
Customers will see additional savings in October when storm restorations fees from Hurricanes Katrina and Rita will come off bills.