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Entergy nuclear plant accused of overcharging ratepayers – customers could now get $millions on refunds.

Growing fight over Entergy nuclear plant could net millions in refunds for customers. Probe over accounting at Grand Gulf has spawned a litany of allegations, BY SAM KARLIN  THE ADVOCATE  STAFF WRITER, FEB 11, 2022 – 

A probe over Entergy’s accounting at its Grand Gulf nuclear power plant in Mississippi has morphed into a larger fight between regulators and the power company, which is accused of overcharging ratepayers at its various subsidiaries hundreds of millions of dollars over a period of several years.

If the Louisiana Public Service Commission and other regulators prevail in the three main probes now open before the Federal Energy Regulatory Commission, or FERC, Entergy could be forced to pay customers substantial refunds.

What started as an obscure probe into arcane accounting practices has turned into a broader battle – over tax maneuvers, compensation for executives and the plant’s performance – the latter of which has drawn in former FERC commissioners and even Mississippi Gov. Tate Reeves, who wrote a letter to the commission about Grand Gulf’s economic impact to his state.

The potential refunds could amount to $1 billion or more across Entergy’s network if FERC sides with regulators across the board, which could mean hundreds of dollars for each affected customer. Regulators in one of the cases already won a favorable recommendation from a judge, who advised FERC to make Entergy pay back $422 million to customers, plus interest, for one of the allegations, likely bringing the tally for that case alone to over $600 million, according to an SEC filing Entergy made late last year.

The judge made that recommendation in April 2020. FERC hasn’t yet made a decision on the case.

Customers of Entergy Louisiana and Entergy New Orleans would split the refunds with ratepayers in Mississippi and Arkansas – a group that totals about 2.5 million customers. Entergy Louisiana and New Orleans customers would get roughly 14% and 17% of the total refunds, respectively, according to the best estimates available in FERC filings…………………………………

The PSC, which regulates Entergy Louisiana, filed a complaint in 2018 accusing the company of violating accounting rules by overbilling ratepayers for a sale-leaseback arrangement – where Entergy sold assets and leased them back from the new owner. Entergy owns 90% of Grand Gulf through a subsidiary called SERI, while Cooperative Energy of Mississippi owns the other 10%.

While investigating that complaint, regulators say they uncovered a host of accounting practices that, taken together, amount to a scheme to systematically overcharge electric customers who get power from Grand Gulf. Among those allegations is essentially that Entergy charged ratepayers more for taxes than it was paying. …………..

there are also allegations that the utility is living high on the hog and trying to stick ratepayers with the bill. Among other charges, regulators questioned Entergy’s expenses for $1.6 million of private airplane travel, lobbying expenses, advertisements promoting Entergy and industry association dues. The PSC said Entergy has improperly assessed ratepayers for those expenses.

Complaints turn to performance issues

Last year, the inquiry widened further. The PSC, the New Orleans City Council and regulators in Arkansas and Mississippi filed a new complaint asking FERC to force Entergy to reimburse customers for a host of glaring performance problems at the nuclear plant – the least reliable nuclear plant in the nation from 2018-2020, according to figures compiled by the Nuclear Energy Institute. The figures showed Grand Gulf was running at full power less frequently than any other nuclear plant in the U.S.………………..

Grand Gulf, which was built in the 1970s, has been troubled from the start. Its two units were budgeted to cost $1.2 billion, but its first unit wound up costing nearly $3 billion. The energy it produced when it went online was about 13 cents per kilowatt hour, well above the typical price of power of about 3 cents per kilowatt hour, according to a FERC filing made by the PSC.

“Grand Gulf has been a bad apple since the late 1970s,” said Logan Burke, head of the Alliance for Affordable Energy. “The costs to run it are going up, benefits from running it are going down, and customers are kind of stuck paying for this thing.” https://www.theadvocate.com/baton_rouge/news/article_6e99be86-8b7a-11ec-8155-e3988c8fc7b3.html

February 12, 2022 - Posted by Christina Macpherson | secrets,lies and civil liberties, USA