Entergy 2015 Annual Report Download - page 19

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19
Clear vision, clear progress.
2015 Integrated Report
The Benefits of MISO Membership
The utility generation assets we own and acquire are now operated within MISO – an evolution of our
operating model that is creating even greater efficiencies, lower operating and fuel costs, lower electricity
costs for customers and significant benefits in deferred generation costs for our business. MISO’s real-
time and day-ahead energy markets use centralized economic dispatch and security constrained unit
commitment to optimize all resources within the region based on bids and offers provided by market
participants. The shift to regional use from localized use of the electrical system allows more efficient
and effective deployment of generation assets. In 2015, Entergy’s CCGT units set all-time production
records due to MISO operations and low natural gas prices.
Utility
for our customers through improved efficiency, reliability and
resiliency. Our strategy calls for the evaluation of acquisitions,
long-term power purchases and new-build options to develop
a modern and efficient generation portfolio capable of providing
reliable, cost-effective power. Our resource decisions are informed
by many factors such as prospective environmental regulations,
including CO2, energy efficiency and demand-side management
programs, as well as the preferences and expectations of our
customers. As a result, since establishing our portfolio transformation
strategy in 2002, we have replaced nearly 20 percent of our generation
resources with cleaner, more efficient resources.
In early 2016, we completed our acquisition of Union Power Station, a 1,980-megawatt generating
facility near El Dorado, Arkansas. The facility consists of four highly efficient, combined-cycle natural
gas-fired generating units. We acquired Union Power Station, which went into commercial service in 2003,
at a purchase price that was approximately half the cost to build a comparable new CCGT facility.
In order to provide additional generation for our Louisiana customers, we
selected in 2015 the self-build option in a competitive process with an
independent monitor. We have requested approval from the Louisiana Public
Service Commission to proceed with the construction on the St. Charles Power
Station, a 980-megawatt CCGT in Montz, Louisiana. With a targeted in-service
date of June 2019, this plant will provide economic and reliable power to our
customers for many years. We are planning for additional resource needs with
similar units in the Lake Charles area of Louisiana and the western region of our
Texas service territory through self-build or other agreements to be determined
in competitive bid processes. Our long-term plans also call for the addition of
smaller, more flexible combustion turbine units in New Orleans and Arkansas.
Since 2002, we have
replaced nearly
20 percent of our
generation resources
with cleaner, more
efficient resources.