Entergy to Forego Reactive Power Earnings and Payments

In early September, Entergy asked FERC to confirm that if Entergy stops paying itself for reactive power, then the New Orleans-based utility can refuse to pay non-affiliated generators for reactive power.  A generator is obligated to maintain reactive power within a specified bandwidth as a condition of its interconnecting with the transmission provider's system, and is not owed any compensation so long as Entergy does not pay itself or its affiliates for providing the same service.  Unanswered is why Entergy until now has paid itself and its affiliates for reactive power.

Apparently expecting a favorable answer from FERC, together with its petition, Entergy filed papers to eliminate prospectively all compensation to Entergy and its affiliates for reactive power.  [FERC Docket No. EL05-149] [NEW MATTER]