PSC Accuses Entergy of Trying to Avoid State Regulation

LITTLE ROCK, AR - The Arkansas Public Service Commission says Entergy Corporation is trying to avoid state regulation of its production costs.  The state PSC made the accusation in a motion filed Monday with the Federal Energy Regulatory Commission.

The Arkansas panel objected to what it called an attempt by the utility to have federal regulators pre-empt state regulation of Entergy Arkansas and its other subsidiaries.  The Arkansas regulators were joined by the City Council of New Orleans and the Mississippi Public Service Commission in its filing before the federal panel.

Entergy operates subsidiaries in Arkansas, Mississippi, Louisiana and Texas.  Entergy Arkansas is the largest provider of electricity in the state, with about 680,000 customers in 63 Arkansas counties.

Customers of Entergy Arkansas are already paying higher rates, totaling about $230.7 million this year alone...because of an earlier ruling by the FERC that production costs must be roughly shared by all of the companies in the Entergy system.

The PSC's filing yesterday related to a filing by Entergy with the FERC earlier this month.  In that filing, Entergy argued that the federal commission had exclusive jurisdiction over any production costs that go into the calculation of the equalization payments made through the system agreement.

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