Entergy System Agreement Termination

The five Entergy Operating Companies (EOCs) have cooperated with each other for over fifty years under the Entergy System Agreement (ESA), which acts as an interconnection and pooling agreement, provides for the joint planning, construction and operation of EOC generation and transmission facilities, and maintains a coordinated power pool among the EOCs. Each EOC, except for Entergy New Orleans, Inc. (ENO), has given notice of its intent withdraw from the ESA, leaving ENO alone in the ESA and therefore effectively terminating the ESA by 2022. The EOCs withdrawing from the ESA are seeking an earlier termination of the agreement by 2019.
Members of the Firm are presently providing support as advisors to the Council of the City of New Orleans in matters related to:

    • The effect on ratepayers of shortening the notice period required to withdraw from the ESA
    • Cost sharing and allocation post ESA
    • The effect of differently sized Transmission Pricing Zones (TPZ) on ratepayers
    • The effect of the EOC’s Midcontinent Independent System Operator, Inc. (MISO) integration on ENO transmission and power costs post ESA termination
    • Matters before FERC related to the ESA, MISO, and TPZ design

Members of the Firm are applying their experience and expertise in the areas of utility planning, network operation, and regulatory ratemaking to provide insight into the effect of changes to the ESA on ENO ratepayers.

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