Entergy Texas Files Plan To Flow Back More Than $200 Million Tax Savings To Customers: News Release

May 16, 2018

 

Entergy to invest in new Texas infrastructure, pass federal tax reform savings to consumers

 

On a path to a Bright Future for southeast Texas, Entergy Texas, Inc. filed a plan to keep rates low, while continuing to grow the economy by investing in new infrastructure to ensure reliable and cost effective electricity for customers.

Entergy Texas is focused on developing a future with innovative technologies to provide energy solutions and assist customers in taking greater control over their electricity costs.

As part of this plan, Entergy Texas is also passing substantial savings from federal tax reform directly to customers.

These tax savings, along with investments in infrastructure to reduce outages and improve service, will result in more reliable and affordable energy to customers.

 

Following the passage of the Tax Cuts and Jobs Act, the federal corporate tax rate was lowered, and Entergy Texas will flow back more than $200 million to customers over the next two years.

This sum represents funds that Entergy Texas had collected from customers according to IRS rules to pay future taxes at the higher tax rate that is no longer in effect.

Additionally, Entergy Texas’ new rates will reflect the lower tax rate going forward.

 

“Tax reform provides Entergy Texas an opportunity to continue our investment to improve our service to customers, while minimizing the effect to customer bills,” said Sallie Rainer, president and CEO of Entergy Texas.

“We are committed to creating a bright future where we offer more energy solutions tailored to our customers’ needs. Today’s filing puts the company on the path to deliver that vision for our customers.”

 

Since April 2013, Entergy Texas has invested $1.4 billion in improvements to modernize its system to improve reliability and provide affordable energy to customers.

Some of these major upgrades include improvements to power plant facilities, enhancing the Lewis Creek Dam, energizing $235 million in new transmission/substation projects, upgrading distribution facilities and improving Entergy Texas’s customer service systems.

Additionally, Entergy Texas’ filing addresses the cost associated with Hurricane Harvey, one of the most devastating storms to hit the communities that Entergy Texas serves in nearly 10 years.

 

Today’s plan filed by Entergy Texas would result in a $2.36 increase per month on the average residential customer’s bill.

This amount reflects the net effect to recover new investments in rates while also reducing total costs to consumers by accounting for tax savings.

The plan will now be reviewed by the Public Utility Commission of Texas. …

 

Financing Comes In for Texas Wind Project Near Corpus

May 14, 2018

 

Citi and a subsidiary of Berkshire Hathaway Energy are part of the financing for the 163 mW Midway Wind project in San Patricio County, north of Corpus Christi.

A unit of Dallas-based Sammons Enterprises secured the hedge, tax equity and construction financing recently along with Franklin Park, which manages Sammons’ assets…
 

Amplify 1Q 2018 Financial Results

May 11, 2018

 

Amplify Energy Corp. has released its operating and financial results for 1Q 2018 and among the highlights:

  • The company announced the sale of the company’s South Texas assets for $20 million, with closing expected in May 2018

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Cowboys’ Jerry Jones Buys Into Comstock

May 11, 2018

 

Comstock Resources announced Thursday it is acquiring $620 million worth of the North Dakota oil and gas assets belonging to Dallas Cowboys owner Jerry Jones, in a stock purchase agreement that will blend the three companies into a joint venture, giving Jones 84% of Comstock…

 

Interstate Oil and Gas Compact Commission Passes Christian Resolution: RRC

Compact Will Encourage Federal Government to Look into Delegation of Authority

 

Austin — The Interstate Oil and Gas Compact Commission (IOGCC) passed Railroad Commission of Texas Commissioner Wayne Christian‘s (R – Texas) resolution asking President Donald Trump and Congress, in the spirit of Cooperative Federalism, to identify federal regulations that should be delegated to the states.


 

Crude Oil Surpasses $70 Per Barrel

By Alex Mills

 

Crude oil prices in the U.S. broke through the $70 mark on the New York Mercantile Exchange (NYMEX) for the first time this week since 2014.

Analysts said increased demand, declining inventories, and tension in some oil producing countries were all contributing factors to the rise in price worldwide.

During the latest decline in price, oil slipped to $26 per barrel in January of 2016. Four months later prices inched up to $40 and in June 2016 the price topped $50.

However, the momentum faded and prices stayed in the $40 to $50 range for 18 months until prices reached $60 in January of this year.

The decline in price began with an oversupply of oil in the U.S. and worldwide four years ago. The oversupply is the result of increased oil production in the U.S. and from countries that were producing and exporting oil, such as Saudi Arabia and Russia. Saudi Arabia pushed for the other members of the Organization of Petroleum Exporting Countries, and Russia, to reduce production and exports.

It wasn’t the first time that OPEC said it was going to reduce production, but in previous agreements countries did not maintain their stated quotas designed to limit production. Many believed that cheating would again prevail.

This time, however, an oversight committee was set up to monitor each country’s production levels to ensure that quotas were maintained.

The International Energy Administration (IEA) recently downgraded its oil forecast for 2018 by 311,000 barrels per day from its previous projection.

Turmoil in Venezuela, Iran, Iraq, and Nigeria – all members of OPEC – have created uneasiness among traders worldwide, which adds to the volatility.

Venezuela, who produced 3.5 million barrels per day just a few years ago, is producing just 1.5 million barrels per day currently. It appears that the current political leaders in Venezuela will have to turn over management of the state-owned oil company in an effort to dig out of this big hole.

The nuclear agreement with Iran is in trouble after President Trump announced this week that the U.S. will be pulling out and implement more sanctions against Iran. Another set of issues that make crude oil traders nervous.

And, we haven’t discussed the other economic issues impacting oil prices, such as the price of the dollar, NAFTA re-authorization, tariffs on steel, and on and on.

 

Alex Mills is the former President of the Texas Alliance of Energy Producers. The opinions expressed are solely of the author.
 

Electric Vehicles – How Many, How Soon?: UofH

May 10, 2018

 

The transition from gasoline vehicles to those powered by electric batteries has the potential to upend the energy industry, but there has been little consensus about when and how it will happen.

Leaders from the energy, finance and other fields recently met for a symposium and workshop hosted by the Gutierrez Energy Management Institute (GEMI) at the C. T. Bauer College of Business at the University of Houston to consider the issue…
 

Sempra’s Got EFH, Oncor and a Lowered Earnings Report

May 10, 2018

 

Sempra Energy of San Diego, California, has completed its $9.4 billion acquisition of Dallas-based Energy Future Holdings and its regulated utility subsidiary, Oncor Electric Delivery Company LLC, but the purchase came at a cost to Sempra’s bottom line.

Sempra’s earnings, reported Wednesday, were down by $94 million when compared to the same period of 2017…

 

Arkansas Commission Approves Wind Catcher

May 9, 2018

 

Arkansas’ utilities regulator has given the go-ahead for an ambitious wind farm that will supply electricity to Texas and three other states.

The Wind Catcher Energy Connection project is a $4.5 billion 2 mW project developed by Invenergy under construction on 300,000 acres the Oklahoma panhandle, which the Arkansas Public Service Commission, after some debate, decided on Tuesday is in the public interest….
 

Perry Suggests National Security Needs In Pipeline Building, Grid Control

May 10, 2018

 

In testimony before Congress, US Energy Secretary Rick Perry suggested on Wednesday that invoking national security may prompt state regulators to decide in favor of approving oil and gas pipeline projects.

Perry said the failure of pipelines to be built because of resistance from state officials is a national problem, and he said he’s concerned over whether states actually have the power to stop construction of pipelines….
 

Enbridge Selling Texas, Oklahoma Assets For $1.12 Billion

May 9, 2018

 

Enbridge (US) Inc. is selling Texas, Louisiana and Oklahoma assets to Boston-based energy infrastructure investor ArcLight Capital Partners LLC as part of an overall $2.5 billion sale, Enbridge said Wednesday.

Calgary-based Enbridge is selling off Midcoast Operating LP, its gas midstream unit, thereby unloading its US natural gas and NGL business, and is also selling some of its renewable energy assets…..