Louisiana Public Service Commission ensures Entergy has skin in the game

During a busy day at the Louisiana Public Service Commission, the Commission secured a $180 Million savings for Entergy customers and laid the groundwork for ensuring Entergy refunds around $600 Million to customers.

Louisianans, unfortunately, are no stranger to storm costs. In February of 2022, when the Commission approved Entergy Louisiana’s initial financing order to securitize $3.2 Billion of storm costs to rebuild their power grid after Hurricanes Laura, Delta, Zeta, and Winter Storm Uri, the LPSC knew they’d have to decide on another $1.6 Billion in costs associated with restoration after Hurricane Ida. Entergy first sought approval for the $1.6 Billion this past December but met opposition from Commissioners who wanted Entergy to take on a portion of the bill rather than put 100% onto their customers.

“I made it clear throughout the process that I would not vote for a 100% of the costs being passed onto customers,” said Dr. Craig Greene, Commissioner of LPSC District 2. “I know that long standing precedent has been set that utilities in Louisiana get 100% of their incurred expenses, but I have long expressed that shareholders and the utility need to have skin in the game, and I am proud that the Commission accomplished, for the first time, that goal in a storm cost recovery case.”

To achieve passage, the LPSC required Entergy to reduce the amount collected in securitization by $180 Million, bringing the final total the Commission approved Entergy to recover to just over $1.4 Billion.

“In a system where saying no to all of the storm costs is not an option, utilizing securitization ensures that utility shareholders make no profits on storm recovery and customers pay substantially less than if the Entergy recovered those costs in their rate base. Lowering the costs and making sure shareholders wear some risk is important,” noted Dr. Greene.

In addition to reducing Entergy’s storm cost recovery by $180 million, the LPSC clarified today the extent of its victory in a lawsuit waged against Entergy at the Federal Energy Regulatory Committee (FERC). For several years the LPSC has pursued claims over Entergy’s improper tax schemes. FERC recently handed down a judgment against Entergy ordering over $600 Million in refunds to Entergy customers throughout Louisiana, Arkansas, and New Orleans. The Commission spent time today discussing Entergy’s recent public relations strategy to deny that they owe any refunds.

“It is irresponsible that Entergy would defy an order to refund customer money at a time where bills continue to rise and such refunds, that were realized through hard fought, expensive legal battles, could help their customers,” exclaimed Dr. Greene. “The Commission will continue the fight and ensure Entergy pays what is owed to their customers.”