“5th Circ. Says Entergy Must Pass $10.9M To Texas Customers”
The Fifth Circuit held Thursday that a Federal Energy Regulatory Commission order authorizing Entergy’s Texas utility to receive an additional $10.9 million payment mandated by an electricity system agreement does not retroactively impact previous payments and that the Public Utility Commission of Texas can make the utility pass the money on to customers.
The majority of a panel of three circuit court judges held a 2015 FERC order allowing Entergy Texas Inc. to receive the additional so-called bandwidth payment, which is meant to help evenly distribute electricity production costs under a system agreement between multiple Entergy utility units, does not reallocate prior bandwidth payments.
…Rex D. VanMiddlesworth of Thompson & Knight LLP, who represents Texas Industrial Energy Consumers, told Law360 on Friday that the majority’s opinion “was well-reasoned and excruciatingly thorough on an arcane issue” and that he is confident it will stand.
“ETI received the $10.9 million bandwidth payment in September 2014 and those payments go to ratepayers, they always have,” he said. “But for this one payment, they decided to keep it as an offset for what they viewed as a prior injustice. We didn’t think that was appropriate and the PUCT agreed.”
…Texas Industrial Energy Consumers is represented by Rex D. VanMiddlesworth, Michael McMillin and James Zhu of Thompson & Knight LLP.