JULY 13, 2006 - Posted at 3:28 p.m. CDT
LITTLE ROCK, AR - Entergy Arkansas chief executive Hugh McDonald told the state Public Service Commission today that the utility probably can't get out of its agreement with its parent company until 2013.
McDonald told the panel all the other companies in the Entergy system would have to agree for Entergy to break its compact and go on its own any sooner.
McDonald was before the commission for an information-only meeting. No vote was taken by the panel.
The Federal Energy Regulatory Commission has ordered Entergy Corporation, the parent company of Entergy Arkansas, to adopt a multi-state rate equilization plan, beginning next year. Arkansas regulators say the plan will result in up to $395 million in additional costs to Entergy Arkansas ratepayers.
McDonald says the utility gave its termination notice in December, but said the contract requires an eight-year notice to leave.