HOUSTON Jan 10 Texas regulators said Thursday a
plan by Entergy Corp to end certain power contracts may
undermine economic benefits for Texas customers that regulators
relied on to approve the firm's move to the Midwest Independent
Transmission System Operator (MISO).
Depending on Entergy's action later this month, the Texas
Public Utility Commission may seek to revoke its October vote to
approve Entergy's integration into MISO, which is set to be
completed by the end of this year, said Texas Commissioner Ken
Transferring control of its 15,000-mile, high-voltage grid
network to MISO is a prerequisite to Entergy's plan to spin off
its transmission business to ITC Holdings Corp in a
$1.78 billion transaction and to help resolve an investigation
by the U.S. Department of Justice.
The controversy over Entergy's transition to MISO was
sparked by a Texas filing which raised commission concern over
what information Entergy may have had, but not disclosed, when
it negotiated the settlement with other companies that the PUC
Anderson said a new economic analysis by Entergy indicates
that $133 million in savings to Texas customers could be wiped
out if Entergy moves forward with a filing at the Federal Energy
Regulatory Commission seeking to end certain purchased power
In a raised voice, Anderson called Entergy's behavior in the
case "unacceptable for a regulated utility" in Texas and
described it as part of Entergy's "long history of hiding the
Commission Chairman Donna Nelson said if Entergy seeks to
change the power contracts at FERC, "it will be contrary to the
facts we relied on" to approve the MISO transition.
The Texas commission wants Entergy to delay any FERC filing
to allow time for an independent analysis to determine how
termination of certain purchased power contracts will impact
MISO's allocation of transmission revenue rights to Entergy
John F. Williams, an attorney representing Entergy, told the
commission that the FERC filing needs to be made by the end of
January, but that the company hopes to find another resolution
to the matter.
Entergy cites several reports that show its membership in
MISO will lead to savings of up to $1.4 billion over a decade
for Entergy's 2.8 million customers in Louisiana, Arkansas,
Mississippi and Texas.