Arkansas Fights FERC Ruling on Entergy Payments

Arkansas has taken its fight against a Federal Energy Regulatory Commission ruling to the D.C. Circuit court.

The Arkansas Public Service Commission is still fighting a FERC decision earlier in the year that Entergy Arkansas Inc. should not have to make millions of dollars in “bandwidth payments.” Oral arguments were heard Friday in Washington D.C.

It stems from a complaint filed by the Louisiana Public Service Commission in which it alleged Entergy had violated the Entergy System Agreement concerning off-system sales of energy. Louisiana contended Entergy broke the agreement when its Entergy Arkansas sold excess electric energy to third-party power marketers that were not parties to the System Agreement.

FERC sided with the Louisiana Public Service Commission. But Arkansas asked for a rehearing and was denied, so it went to court, arguing FERC’s decision was “unjust and unreasonable in that it ignored the excessive bandwith payments made by Entergy Arkansas ratepayers.

The Arkansas Commission has challenged the payments as it seeks to protection for the Entergy retail electricity customers from higher charges passing on the bandwidth payments.