Entergy Tops Electric Utilities List

by Luke Jones  on Monday, Aug. 19, 2013 12:00 am  

Entergy Arkansas Inc.'s Little Rock headquarters. (Photo by Mauren Kennedy)

As is typical for Arkansas Business’ list of largest electric utility companies, Entergy Arkansas Inc. takes the top spot with $1.74 billion in 2012 revenue, up 2.86 percent from the previous year.

The list is ranked by revenue as filed publicly with the Arkansas Public Service Commission.

Entergy Arkansas is one of several operating companies under the Entergy Corp. umbrella. The others are in Louisiana, Texas and Mississippi.

The company has been undergoing huge changes during the past two years as it prepares to exit its system agreement and move its transmission lines to a regional transmission operator. In 2011 Entergy chose the Midwest Independent Transmission System Operator of Carmel, Ind., or MISO, to take that job, and the process of transitioning is slated to be complete by the end of this year.

(See our cover story this week for more details on what it’s costing some of the state’s utilities to transition.)

While MISO will be operating Entergy’s former transmission lines, the 15,800 miles of lines will actually be owned by ITC Holdings Corp. of Novi, Mich., which is purchasing the lines from Entergy for $1.78 billion.

That transaction was approved by the Federal Energy Regulatory Commission earlier this year, but still must meet state approval.

Get the List: Download the list of electric companies and oil companies in Arkansas.

Most of the rest of the electric utilities on the list are the state’s cooperatives. The cooperatives tend to service the more rural areas in the state, and excess revenue is returned to members in the form of dividends that can be either cash or credit toward future energy bills.

The largest is Arkansas Electric Cooperative Corp., with $660 million in 2012 assessable revenue, down 1.09 percent from 2011.

The list shows AECC as having 36 customers. This number is so small — compared with Entergy’s 697,200, for example — because AECC’s “customers” are actually the state’s other cooperatives and several other utilities. According to its website, AECC was created in 1949 to provide Arkansas’ cooperatives with a “reliable and affordable” power supply.

Essentially, AECC serves as a resource for other utilities so they do not have to rely on larger, investor-owned utilities for wholesale power.

 

 

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