Jackson, MS-Attorney General Jim Hood announced today that he has been forced to file suit in Hinds County Chancery Court over Entergy Mississippi’s refusal to assure its customers they are not being cheated.

“We have asked Entergy to ‘turn on the lights’ and justify its recent rate increases by releasing information about its business practices. Our requests have been denied, and now Entergy must tell a judge why a public utility should be allowed to hide these documents,” General Hood said.

The Attorney General’s Office has described Entergy’s business practices as a “shell game,” in which the utility buys electricity and fuel for Mississippi at inflated rates from its sister companies in neighboring states and then overcharges Mississippi customers.

General Hood pointed to three cases in Louisiana and Texas in which Entergy has been accused of engaging in deceptive pricing schemes and of overcharging its customers.  Two of these cases have already resulted in the refund of tens of millions of dollars to ratepayers, and the third is pending.  These cases, he said, provide reason to believe that Entergy is violating Mississippi laws. Specifically:

· In Delany, et al v. Entergy Louisiana, Inc. and Entergy Corp. (December 13, 2000), the company faced both an administrative proceeding and a class action lawsuit, and finally agreed to refund $72 million in overcharges to ratepayers.  Read more.

· In Gordon v. Council of New Orleans (February 25, 2008), the Fourth Circuit Court of Appeals ordered Entergy New Orleans to pay $34 million to ratepayers.  Read more.

· In Jenkins v. Energy Corp. (March 2, 2006), the company is facing a class action lawsuit in Texas alleging that Entergy harmed customers by devising an improper pricing scheme to sell and deliver higher-priced electricity to customers while rejecting less expensive energy options. Read more.

· In 2007, Entergy Arkansas, Inc. paid approximately $252 million to the other Entergy operating company utilities pursuant to FERC (Federal Energy Regulatory Commission) Orders, with Entergy Mississippi, Inc. receiving roughly $41 million of that amount.  Read more.

The Attorney General’s Office, which has statutory authority under the Mississippi Consumer Protection Act to investigate Entergy Mississippi’s dealings, has asked the company for pricing information along with information about its fuel buying and selling primarily for the past 10 years.

“Our question from the start has been: If Entergy has nothing to hide in Mississippi, then it should be eager to release the documents we have requested and show our ratepayers that they are not being overcharged, especially during these times of economic hardship,” General Hood said.

Federal Court Filing
State Court Filing