Arkansas accepts $142 million settlement from Entergy over alleged nuclear plant mismanagement - KATV

Arkansas accepts $142 million settlement from Entergy over alleged nuclear plant mismanage | KATV

LITTLE ROCK (KATV) — The Arkansas Public Service Commission (APSC) agreed to a $142 million settlement with Entergy over the alleged mismanagement of its Grand Gulf Nuclear Station in Mississippi, which supplies power to multiple states.

The APSC previously rejected a $142 million settlement Entergy proposed in 2022, calling it a "low-ball" offer.

The legal battle began in 2017, when utility regulators in Mississippi, then Arkansas and Louisiana, said Entergy overcharged residents in all three states hundreds of millions, perhaps even billions of dollars.

Arkansas is the second state to agree to a settlement, after Mississippi in 2022. Louisiana has yet to accept one.

The three states accused Entergy of inflating numbers used to justify rate increases over the years, saying that the $800 million spent on upgrades to the Grand Gulf plant to improve its efficiency were ineffectual. In response to complaints, the Federal Energy Regulatory Commission (FERC) initiated an investigation.

Entergy has repeatedly denied any misconduct on its part.

According to APSC, its decision to accept the Entergy settlement offer it formerly rejected was based on years of expensive litigation costs that were already affecting Arkansas customers' rates. It accepted Entergy's settlement offer in October, settling all litigation involving the Grand Gulf Station.

APSC said in a statement that it "is pleased to have reached a settlement agreement with Entergy Arkansas, resolving 19 dockets and related litigation before the Federal Energy Regulatory Commission, the longest of which has been pending for approximately six years. At this time, the settlement is pending FERC approval."

In its statement, Entergy said "A global settlement including Entergy Arkansas, LLC, System Energy Resources, Inc., and the Arkansas Public Service Commission has been filed with the Federal Energy Regulatory Commission for approval, resolving all current claims at this time. This settlement resolves costly litigation and will result in meaningful benefits for customers. Once the settlement is approved by FERC, Entergy Arkansas will make a filing at the APSC to calculate the amount customers will receive on their bill and subsequently issue refunds..."

Entergy refunds may begin to be issued early next year, APSC said.

APSC said that the Grand Gulf Nuclear Station has remedied the billing problems that brought on the litigation, and Arkansas ratepayers are no longer being overbilled for the plant's power.