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Reliability or Profit? Why Entergy Quit the Southwest Power Pool

Fortnightly Magazine - February 1 1998

Overall, one can see a striking difference between the Entergy split, on one hand, and the spinoff of FRCC from SERC, or the prospect of a merger between SPP and MAPP, on the other. The last two represent friendly transactions, with economic benefits promised for all parties. The Entergy withdrawal, however, is more appears analogous to a corporate downsizing. It may cause the SPP to tighten its belt in terms of expenses (em to attempt make up a portion of the lost Entergy revenues through higher dues to the remaining SPP members.

David E. Dismukes is an assistant professor at the Center for Energy Studies, Louisiana State University. Fred I. Denny is an associate professor in the Department of Electrical and Computer

Engineering, Louisiana State University.

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