FERC resolves legal matter related to Entergy subsidiary
The Federal Energy Regulatory Commission (FERC) resolved a legal matter involving System Energy Resources (SERI), a subsidiary of Entergy, over uncertain tax positions.
In this case, FERC denied a request for SERI — the majority owner of the Grand Gulf Nuclear Station in Port Gibson, Miss. — to pay additional refunds to customers. In addition, the FERC ruling ordered SERI to recalculate the value of overpayments on sale-leaseback refunds previously made to customers.
“We are pleased today’s order resolves a major source of litigation between our regulators and SERI,” Rod West, Entergy group president, utility operations, said. “We hope the clarity provided by the FERC in this ruling helps to guide constructive discussions with our regulators to resolve the remaining SERI litigation matters. A comprehensive settlement could provide significant and imminent refunds to our customers at a time when energy bills are high due to record usage.”
Entergy officials said the company’s actions have always been in the best interest of its customers. In this matter, company officials said SERI claimed legitimate federal tax deductions for its business operations, which, if successful, would lower costs for customers. Ultimately, the Internal Revenue Service (IRS) allowed over $100 million of the tax positions taken and the subsequent credits were passed on directly to customers.
FERC’s order this week does not require any further refunds or credits beyond those previously paid.
In the summer of 2022, Entergy Mississippi reached a settlement agreement with the Mississippi Public Service Commission on several pending SERI cases being litigated. One of those was this case, resolved this week by FERC. That agreement provided $300 million in credits directly to Entergy Mississippi customers.
Entergy serves 3 million customers through its operating companies in Arkansas, Louisiana, Mississippi, and Texas.
