New Entergy CEO: Utility customers can expect nearly flat power bills over next three years

Big investment plan

Marsh, who took over as CEO from Leo Denault in November, faces several key decisions from regulators, including negotiations in New Orleans over a new formula rate plan, which sets the rate of return it can make.

There are also key talks over $15 billion in new infrastructure investment over the next decade, including $1 billion for New Orleans alone.

As Entergy’s finance chief for a decade prior to taking the top job, Marsh focused primarily on putting the company on a more predictable financial footing, which included getting out of volatile wholesale nuclear power generation. It also included increasing the profits distributed to Entergy’s shareholders.

A bigger payout to shareholders became a focus of criticism from consumer advocates and regulators, who argued that Entergy’s customers appeared to be bearing all of the burden of the economic downturn, storm repair costs, and investment to improve infrastructure, while shareholders — and top executives — seemed to be bearing little risk for their returns.

Marsh told investment analysts Wednesday that he expected earnings to continue to grow by between 6% and 8% this year after last year’s $1.1 billion in net earnings. Dividends are expected to grow by about 6%.

“Our investors know that we have rate-regulated returns so they are looking for steady, predictable earnings and dividend growth,” he said. “For the last several years, that’s what we’ve been aiming to deliver.”

A capital plan

Marsh argued that keeping shareholders happy means a lower cost of raising money for investment, which ultimately means lower bills for customers.

“The more predictable we can be, the lower our cost of capital. And that translates, ultimately, directly to lower customer bills,” Marsh aid. “It helps with our credit, helps with our borrowing and it helps with financing all the investments that our customers need for clean energy and resilience.”