• Tue. Aug 9th, 2022

Miss. Public Service Commission Obtains $300,000,000 Settlement With Entergy Mississippi – The Vicksburg Post

ByChad J. Johnson

Jun 23, 2022

The Mississippi Public Service Commission on Thursday announced a $300,000,000 settlement with Entergy Mississippi, the state’s largest electric utility, and other parties.

The unanimous bipartisan settlement that will produce cash payments or bill credits to Entergy Mississippi’s 461,000 customers, as well as mitigating future rate increases caused by volatility in global energy markets, represents the largest State History Civil Service Commission cash settlement.

In 2017, the Commission initiated litigation before the Federal Energy Regulatory Commission regarding certain accounting and financial aspects of the Grand Gulf Nuclear Generating Station that resulted in Thursday’s settlement. The $300 million settlement with Entergy Mississippi and other parties is tied to 13 litigation proceedings before the Federal Energy Regulatory Commission. This comprehensive settlement for the State of Mississippi will provide early benefits to Entergy Mississippi customers through refunds and potential rate reductions, as well as reduced regulatory uncertainty at the Grand Gulf Nuclear Generating Station, said said a statement from Northern District Civil Service Commissioner Brandon Presley.

The results of the settlement include:

  • Producing approximately $300 million in total benefits for Entergy Mississippi customers.
  • $200 million will be used to offset natural high prices caused by global spikes in energy markets.
    • Without the injection of this $200 million, Entergy Mississippi customers would have seen an increase of more than $15 per month starting in January 2023.
    • The $200 million offset from Entergy Mississippi’s natural gas supply to generate electricity will also erase more than $20 million in costs that Entergy Mississippi customers would have incurred.
  • $35 million will be used for a one-time bill credit or check of approximately $80 for each customer.
    The remaining savings of $65 million will provide additional benefits that will mitigate future costs to customers.
  • Entergy Mississippi, at its shareholders’ expense, will incur costs of $600,000 over the next four years for an annual audit of certain financial aspects of the Grand Gulf Nuclear Generating Station, in accordance with the Commission’s guidelines.

“Today’s settlement is a huge win for Entergy Mississippi customers, especially in the Central District, where nearly 70 percent of Entergy Mississippi customers reside,” said Central District Commissioner Brent Bailey. “The $80 credit for every customer – and every other dollar we can help customers save on their electric bills – is flowing back into their pockets at a time when Mississippians are facing rising prices for many goods and consumer services.

“The conclusion of this lawsuit also allows the Commission to order Entergy Mississippi to use $200 million to offset planned rate increases, which will also put money back in their pockets,” Bailey added. “As commissioner, it is an honor to be part of the success of this remarkable settlement.

Over the next few weeks, the Commission will process and order the disbursement of the Settlement.