Entergy Arkansas on the hook for $135 million—not ratepayers



A federal judge recently ruled Entergy Arkansas is on the hook for a $135 million refund ordered by federal regulators. And it won’t be ratepayers who’ll be coughing up the money.

The ruling stems from a system agreement that Entergy Arkansas had to operate as a pool with Entergy Texas, Louisiana, New Orleans, Texas and Mississippi to share capacity allow access to additional capacity as needed. Under the agreement, the costs were allocated among the five groups.

However, in 2009, the Louisiana Public Service Commission filed a complaint against Entergy Arkansas with the Federal Energy Regulatory Commission regarding third party sales of excess gas by Entergy Arkansas violated the agreement. FERC ruled Entergy Arkansas could make the sales but they also violated the system agreement.

It was in 2018 when Entergy Arkansas paid $135,037,914 to the othere Entergy companies. Then the company turned around and filed an appeal. But early this month, U.S. District Court Judge Brian S. Miller entered an order affirming that it was Entergy Arkansas and shareholders, not customers, who were on the hook for the $135 million.

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