La. Entergy customers to receive refunds after Public Service Commission wins lawsuit against company

Entergy issuing refunds to La. customers after losing lawsuit from Public Service Commission

BATON ROUGE, LA (WAFB) - Entergy customers in Louisiana will receive refunds on their power bills in January, February, and March after the Louisiana Public Service Commission (PSC) won a lawsuit against the company.

PSC says for customers using around 1,300 kilowatt hours per month should get a refund of about $5.50. PSC voted Wednesday, Jan. 16 to approve the plan to disburse the refunds, which total about $58 million, over the next three months. Interest will be added to the bill credits for the refunds.

In 2009, PSC accused Entergy of violating the Entergy System Agreement by selling cheap load energy owner by Entergy Arkansas off-system to merchants for the benefit of Entergy shareholders, rather than making the power available to Entergy Louisiana and other system companies. PSC says this action caused customers' bills to rise because customers had to pay for higher priced replacement power.

A spokesperson with Entergy says in 2012, the Federal Energy Regulatory Commission (FERC) rejected PSC’s argument that Entergy Arkansas was not allowed to make the sales, and instead concluded the System Agreement permitted Entergy Arkansas to make opportunity sales for its own account. The spokesperson also says FERC specifically found the sales were made and priced in good faith, contrary to PSC’s assertion Entergy deliberately tried to benefit shareholders at the expense of ratepayers.

After the suit was brought before FERC, $135.6 million in damages was eventually awarded against Entergy Arkansas. The Louisiana portion of damages was $58.6 million.

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