Entergy Admits Possible Pricing Irregularity

Entergy Mississippi has informed state officials of a possible pricing irregularity. MPB's Patty Davis reports, the admission could lead to millions in refunds for Mississippi customers.

In a letter to the Public Service Commission Thursday, Entergy Mississippi has admitted that energy produced under an Evangeline Gas contract in Louisiana may have resulted in inflated costs to Mississippi ratepayers. Entergy Mississippi spokesperson, Mara Hartman.

"Some time around 2005, energy that was produced by Evangeline Gas was permitted to be sold under an Entergy system exchange. And we are one of the participants in that. Whether that would have been higher priced or lower priced or negatively impacted them or positively impacted them, we just don't know at this point. And that's what we are trying to find out".

A lawsuit in Louisiana ended with a settlement from Entergy that resulted in millions in refunds to customers. Mississippi Attn'y General Jim Hood has filed suit alleging further overpricing by Entergy in Mississippi.

"Our overall suit covers alot of other causes of action. So we've got em to admit one part of it. All be it a large part, in fact the majority of the cause of action for which the state of Louisiana recovered on behalf of the rate payers. But it's undeniable now, they have admitted, they overcharged Mississippi customers".

Allegations in the Mississippi lawsuit date back to 1974.

"I and the Public Service Commisssioners.. they issued this order that is very stern for this admission. In other words they've been lied to. Possible perjury, I don't know. They are gonna stand with this office to be sure they don't try to settle for pennies on the dollar".

Hartman says this admission by Entergy does not prove any overpricing has occurred.

"We don't even know if our customers used any from this contract, or if they did use it, if it had any negative impact at all. This is just a letter to the Commission to let them that know we found something that was inaccurate in what we had given them before, and we were working to correct that".

Entergy Mississippi provides electricity to more than 427,000 customers in 45 Mississippi counties. For MPB news, I'm patty Davis.