OSCEOLA, AR (KAIT) - The City of Osceola has filed a lawsuit against Entergy Arkansas.
The city is asking for $5 million, claiming Entergy overcharged Osceola for power the company provided, according to Osceola Mayor Dickie Kennemore.
"Our lawyers David Wilson and Chuck Banks out of Little Rock came to the city council (meeting Monday night) and asked about filing a lawsuit to recapture that overcharge, and they estimated it to be just under $5 million, but also they're claiming interest," he said.
"Our issue was from 2007, 2008, 2009 with Entergy, and we had an identical contract as Union Electric."
Mayor Kennemore said the city council decided to sue after Union Electric won a lawsuit against Entergy for overcharging for energy.
"Union Electric prevailed in court last year sometime in 2013," he said. "Our attorney looked at it and said we're due a refund also because Union Electric had the identical contract that Osceola did."
Entergy was the city's wholesale provider for power for nearly three decades until the city switched companies in 2009.
He says the city council authorized spending up to $25,000 to hire an additional consultant to strengthen the case.
When asked what the city would do with settlement money if the lawsuit is successful, Mayor Kennemore said, "It would go back to Osceola Power and Light and then it would be up to the city council as to decide what to do with it. We could do any number of things with it. It could be a rate reduction. It could be a refund. It is the decision of the city council."
Osceola's lawsuit heads to trial May 19.