New Orleans utility
) bid to join the Midwest Independent Transmission Operator
("MISO") has been sanctioned by both the Mississippi Public
Service Commission and the New Orleans City Council. The
tentative joining is set for the month of December 2012.
The company has previously received approval from the
regulatory bodies of Arkansas, Louisiana and Texas for the
proposed move. MISO is one of the largest independent
transmission organizations which is involved in the purchase and
sale of electricity in the organized markets and provides direct
access to power to 11 Midwestern states and Canada's Manitoba
The transition to MISO will enable Entergy to gain reliable
and cost-effective transmission services which will boost the
company's margins. Besides, this membership is expected to lead
to savings of $1.4 billion over a period of 10 years for
Entergy's strategic move to MISO comes at a time when the
company recently acquired two natural gas-fired plants in the
Arkansas and Mississippi from KGen Power Corporation. These
planned moves will offer ample opportunities for future growth at
Entergy. Moreover, the potential savings could lure new customers
thereby expanding Entergy's customer base.
Entergy has also been seeking regulatory support for its
divestiture of the long-distance electric transmission business
ITC Holdings Corporation
) and is awaiting decisions.
Entergy faces stiff competition from
CenterPoint Energy Inc.
). The latter is also focusing hard on the development of its
pipeline assets. Entergy has a short-term Zacks #3 Rank (Hold
rating) in view of the continued weak economic environment in the
U.S. which will weigh on the company's power sales.
Entergy Corporation and its subsidiaries are engaged in the
electric production and retail distribution operations. The
company operates in two segments, Utility and Entergy Wholesale
Commodities. With market capitalization of $11.20 billion, the
company has 14,682 employees.
CENTERPOINT EGY (CNP): Free Stock Analysis
ENTERGY CORP (ETR): Free Stock Analysis
ITC HOLDINGS CP (ITC): Free Stock Analysis
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