16 Aug 2012
On Tuesday, the US Court of Appeals for the D.C. Circuit handed two Energy Corp. operating units – Entergy Arkansas and Entergy Mississippi – a clean win in appeals by City of New Orleans and the Louisiana Public Service Commission over the breakup of the Entergy System Agreement.
The system agreement had bound Entergy’s six utilities that serve in Mississippi, Arkansas, Louisiana, and Texas in a joint operating agreement that FERC interpreted as making them financially interdependent, with payments flowing between utilities as needed to “roughly” equalize costs.
The agreement provided for parties to exit the arrangement after eight years advance notice, which was given by Entergy utilities in Arkansas and Mississippi.