Federal energy regulators say Entergy Louisiana and Entergy New Orleans customers were overbilled by hundreds of millions of dollars, but the utility says no additional refunds are due beyond those already paid out.
The Federal Energy Regulatory Commission made a pair of decisions last month related to tax decisions made by Entergy subsidiary System Energy Resources Inc. (SERI) related to the future cost of decommissioning the Grand Gulf nuclear plant in Mississippi. In turn, the Louisiana Public Service Commission (LPSC) said refunds over these tax deduction issues should amount to $556 million, with Louisiana power customers still owed a total of $350 million.
But in a statement provided to the Louisiana Record, Entergy said the FERC decision on uncertain tax positions taken by SERI in past decades means it owes customers no additional refunds beyond those provided in a payout last year.
“While we disagree with some elements of FERC’s findings, in particular its ruling on the (Grand Gulf) sale-leaseback claim, we are pleased that FERC’s remedy results in no additional refunds due to customers beyond those already provided in 2021 on the uncertain tax positions taken by SERI,” Drew Marsh, Entergy’s chief executive officer, said in a statement.
Entergy also noted that in the sale-leaseback case involving the nuclear plant, SERI was ordered to refund about $149 million for past tax deductions that were disallowed.
“SERI disagrees with this ruling and will seek rehearing,” the Entergy statement says.
Grand Gulf, the largest single-unit nuclear reactor in the nation, provides power to utility customers in Arkansas, Louisiana and Mississippi.
The LPSC expressed surprise at Entergy’s interpretation of the FERC orders, calling the company’s position “blatantly inaccurate.”
“For reasons unknown, Entergy is attempting to mislead its consumers, investors and the public regarding the consequences of FERC’s findings of unjust and unreasonable conduct by SERI,” LPSC Chairman Lambert Boissiere said in a statement.