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Sun Dec 22, 2019, 09:21 AM

Entergy sues the New Orleans City Council over lower profit rate and $1 million fine

By Michael Isaac Stein


Entergy New Orleans, the city’s electric and gas utility, filed two lawsuits on Friday over recent decisions by the New Orleans City Council, which serves as the company’s regulator. One of the suits challenges the council’s November decision to lower the profit rate the company can collect from New Orleans customers. The other challenges a $1 million fine the council levied on the company for its “inaction and omissions in mitigating” the thousands of power outages the city experiences every year.

In a letter to the Clerk of Council, Entergy attorney Alyssa Maurice-Anderson said the company needed to file the suits within 30 days of the Nov. 7 council votes in order to maintain the option of pursuing a judgement down the line. But, she wrote, the company is willing to negotiate with the council through the city’s regulation process, known as a utility docket.

“I would emphasize that [Entergy New Orleans] remains open to efforts to resolve the issues in this docket through agreement as opposed to continued litigation,” the letter said.

As part of a resolution setting citywide gas and electric rates, called a “rate case,” the City Council last month voted to lower Entergy’s “return on equity” rate, a key factor in determining the amount of profit it can collect from customers, despite threats from the company that it would sue. The council’s decision also went against the wishes Mayor LaToya Cantrell, who sided with Entergy’s demand for a higher profit.

Read more: https://thelensnola.org/2019/12/10/entergy-sues-the-city-council-over-lower-profit-rate-and-1-million-fine/

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