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Entergy Drops Bid for Renewal of Market-Based Rates for Control Area Transactions

Entergy Services Inc., on behalf of the Entergy affiliates conducting power sales in the Entergy control area, notified FERC that it was withdrawing the Entergy affiliates' pending request for renewal of market-based rate authority for transactions in the Entergy control area [ER91-569-023, et al].

In accordance with prior orders issued by FERC, Entergy said that the Entergy affiliates will submit, within 60 days of the July 22 filing, cost-based rates for new transactions that sink in the Entergy control area.

Entergy said that it made this decision "to avoid the uncertainty and delay of continued litigation over market-based rates in its control area," as well as to focus its resources on implementing an independent coordinator of transmission (ICT) in its area.

"Entergy is therefore not, by submitting cost-based rates, in any way conceding that it has market power in its control area and we note that the Commission has not found that Entergy has market power in its control area," the power company said. "Entergy's decision will avoid unnecessary litigation over this issue and allow the Commission and Entergy to focus on more productive endeavors such as ICT implementation."

Entergy said that its decision to withdraw its request for market-based rate authority renders a hearing in a pending proceeding at FERC moot. In a prior order, the Commission established the hearing to examine Entergy's delivered price test, in order to determine whether Entergy should be allowed market-based rate authority for transactions in the Entergy control area.

"Because Entergy is withdrawing its request for market-based rate authority for transactions in the Entergy control area, the purpose of the hearing has been eliminated, and the hearing is moot," the company said. "Accordingly, the hearing in this proceeding should be terminated."

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