Please try again. 9A Lee Russ & Thomas Segalla, Couch on Ins.3d 131:31 (2005). Serv.
Pub. Serv.
The Commission denied rehearing, ruling that it approved the Coal Inventory Policy based on Entergy's representations that the company would actually maintain the expected level. Id. Accordingly, we reverse and remand on this issue with instructions to the Commission to recalculate working capital accordingly.6, By the end of the test year in this case, Entergy had accumulated a large balance in a pension reserve fund, which it would eventually pay as pension expense. See generally S.W. There was no evidence before the Commission that Entergy Arkansas's lag time was historically abnormal or that it significantly diverged from other, similarly-situated companies (as in the case of Entergy Arkansas's D/E ratio); rather, the evidence was that it diverged from that of a company with more stockholders, its parent company. 2. However, the Commission relied on Ark.Code Ann.
See Alltel Ark. Pub. Click here to contact our editorial staff, and click here to report an error. However, even if the issue is not moot, we conclude that reversal on this point is not warranted. In 1974, Entergy entered into a twenty-five-year lease of the Blytheville Turbine.
Affirmed in part; reversed and remanded in part.
Prior to the hearing, the Commission informed all parties of its long-standing rule that, once cross-examination of a witness by counsel was completed and the Commissioners began the independent questioning, further examination by counsel was foreclosed. Moreover, in Contel, this court held that the Commission should use the precise lag time to calculate a dividends-payable balance. Serv. Comm'n v. Continental Tel.
David Boyd, vice president of government and regulatory affairs, told officials of Arkansas Department of Arkansas Congressmen Continue to Push Back. pipeline safety services. Entergy cites Southwestern Bell Telephone Co. v. Arkansas Public Service Commission, 19 Ark.App. Bell Tel.
Comm'n, 76 Ark.App.
Begin typing to search, use arrow keys to navigate, use enter to select. Shortly after the test year ended, Entergy disbursed $80 million from the account. A copy of Governor Hutchinson news release can be downloaded here.
General Links at the top of the page will provide you with information regarding the Electric, Telephone, information regarding who we are, public hearing dates, rules, forms and Spanish translations can also be found here. Following the lease's expiration in 1999, Entergy incurred certain costs, which it attributed to removing the asset from its books.
S.W. In fact, one of the orders indicates to the contrary, stating that Entergy's 1996 storm-damage expenses were normalized to reflect a reasonable, allowable annual level based on historical weather data; that the 1996 rate proceeding contemplated only a normal level of storm-damage expense; and that Entergy bore the risk of incurring some storm damage expenses in excess of the normalized allowed level within a reasonable limit. With this evidence before it, the Commission's determination that it did not approve reserve accounting for storm expenses cannot be considered arbitrary. In all other respects, we affirm the PSC's decision. Through use of the riders, Entergy enjoys an automatic recovery of certain costs, as opposed to the mere opportunity to recover its costs from the ordinary rate base. [8], In 2019, each commissioner received a salary of $137,094, according to the Council of State Governments. 23-2-403 (Repl.2002). readmore>, The utility is seeking an increase that would add about 7.5% to the average residential customers bill. Counties |
Entergy now argues that the Commission miscalculated the D/E ratio because it used actual figures for some components and hypothetical figures for others. Entergy argues on appeal that the Commission arbitrarily required coal inventory to be static and absolute. We do not believe the Commission's order so states. Elections in 2022 | Entergy proposed to include as an asset, for purposes of working capital, approximately $6.6 million of undistributed stores expense. However, a PSC Staff witness testified that the amount should not be included in working capital assets because Entergy would receive a return on the materials in other ways, either as part of the physical plant after completion of construction or as an operational expense. There are statutory qualifications to becoming a commissioner, as follows: "one (1) of whom shall be a lawyer. Arkansas Department of Environmental Quality Director Becky Keogh listens as Public Service By Michael Brooks Facing opposition in Arkansas, a transmission developer is using an unusual tactic in order to garner public support for a proposed project: online petitioning. The briefs were filed at the conclusion of an eight-day proceeding, during which the issues were well defined and the parties' positions were made exceedingly clear. See Ark. The Commission agreed that Entergy was entitled to a carrying charge to compensate it for the monies advanced, and it chose the same rate of interest used on customer deposits, about four percent. [4] To be a qualified elector, one must be a U.S. citizen, a resident of Arkansas and at least 18 years old. See generally Ark.Code Ann. In particular, it claims that the Staff witness's testimony represents a misunderstanding of the stores accounting process. Ms. OGuinn has served for 16 years at the Arkansas Department of Environmental Quality (ADEQ). Entergy first challenges the Commission's disallowance of approximately $47 million in storm restoration costs.
Arkansas Public Service Commission links, also on the right. (2) Each commissioner shall have resided in the state for five (5) years and shall be a qualified elector. Working capital is part of a utility's rate base on which a return is allowed. Pub. The Commission therefore used a hypothetical D/E ratio of 52/48, as recommended by the PSC Staff and the Attorney General, to establish the cost of capital. Besides its regulatory duties, the commission provides customer service to Arkansas consumers; it answers questions and addresses complaints against regulated companies.[5].
Witnesses also testified that the undistributed stores account is a temporary clearing account and that, once items in the account are assigned to a construction or maintenance project, the expenses associated with the project are moved to other accounts. Entergy argues that the Commission's decision was arbitrary and not based on substantial evidence. See also Contel of Ark.
322, 720 S.W.2d 924 (1986). There are no term limits associated with the offices of commissioner or chair. However, the Commission approved the approach used by the Staff witness, who established an average balance based on Entergy's past figures rather than one or two transactions.
Entergy makes the same argument regarding the storm reserve account in this section as it did in the previous section on costs. Entergy appeals on numerous grounds, one of which merits a partial reversal. The PCA Rider allows Entergy to recover the annual cost-equalization payments from its customers over twelve months. A utility is entitled to recover the cost of financing its plant and working capital. We therefore affirm on this issue.3. The FERC agreed and required Entergy Arkansas to subsidize some of the other companies' expenses beginning in 2007. Constitution of Arkansas, Article 19, Section 3. If an order of the Commission is supported by substantial evidence and is neither unjust, arbitrary, unreasonable, unlawful, nor discriminatory, the appellate court must affirm the Commission's action. See Contel, supra. Little Rock, Arkansas 72203-0400, Physical Location: The Commission is also charged with the duty of No person hereafter convicted of embezzlement of public money, bribery, forgery or other infamous crime, shall be eligible to the General Assembly or capable of holding any office of trust or profit in this State. Co. v. Ark. The precise value of dividends payable as a zero-cost liability is, unlike many of the mathematical values in this case, easily and accurately computed by reference to a fixed, objective amount: the number of days the utility holds the dividend funds before paying them. Serv. 10. Co. of S.W.
Entergy complains that, while the Commission used these samples to establish the hypothetical D/E ratio, it incongruously used Entergy's actual, four percent preferred-stock figure as part of the capital structure.
Serv. We disagree.
privacy policy, and a site map. See Assoc. It includes the cash and other non-plant investment in assets that a utility must maintain in order to meet its current financial obligations and provide utility service to its customers in an economical and efficient manner.
Bell Tel. The PSCs executive director, By Tom Kleckner LITTLE ROCK, Ark. electricity, natural gas, Entergy argues that, because a negative balance actually existed in the pension reserve account in 2006-07, Entergy should have the benefit of that balance, which would eliminate the account as a zero-cost liability.
259, 709 S.W.2d 96 (1986). COPYRIGHT MITCHELL, WILLIAMS, SELIG,
Serv.
To establish an absence of substantial evidence, the appellant must demonstrate that the proof before the Commission was so nearly undisputed that fair-minded persons could not reach its conclusion. Arkansas environmental and utility regulators began a dialogue with stakeholders on how to comply with the Environmental Protection Agencys Clean Power Plan in an all-day workshop Friday at the states Department of Environmental Quality headquarters.
Entergy did not ask in this case that the Commission view the $47 million in past storm expenses only as historical data for the purpose of establishing future rates. Pub. Dep't of Human Servs. However, the Commission rejected Entergy's inference that Staff's lack of objection to capitalization of this expense provides assurance of future Commission approval of prospective rate treatment in a general rate case. The Commission ruled that it was Entergy's choice to capitalize the expenses and that, if Entergy had wanted the Commission to consider the costs as a future regulatory asset, it should have petitioned for such approval. We affirm the remainder of the Commission's orders. by the utilities for the purpose of providing such service. We recognize that, in Contel, the dispute concerned the value of dividends payable in the parent company's capital structure. We decline to invade the Commission's wide discretion on this matter. When the costs outstripped the annual expense allotment, the reserve account accrued a negative balance that reached approximately $47 million by 2006. Further, the Commission determined that the material submitted by Entergy was not additional evidence which was not part of the original record but was essentially little more than a rehash of the pre-filed evidentiary testimonies The Commission also made the following finding: Further, the Commission could easily conclude that the [additional evidence is] more akin to a supplemental post-hearing brief in contravention of [the Commission's order]. PITTMAN, C.J., and HART, ROBBINS, VAUGHT, and BAKER, JJ., agree. The witnesses in this case utilized that method and others to arrive at return-on-equity figures ranging from 9.5% to 11.25%.
Gas and Water or Consumer Services Sections, the Pipeline Safety Office, or the Tax Division of the Commission. Assoc.
The Commission did so under the assumption that this level will be maintained prospectively, representing an average, normal level. It ordered Entergy to maintain an average operational supply and stated that failure to do so would be deemed imprudent. The Attorney General basically concurred with Staff's approach. As there is no risk involved with the riders, a carrying charge that mirrors Entergy's overall rate of return, which does include the element of risk, would, as the Commission determined, be incorrect. No particular methodology is precise in calculating working capital, and a determination of working capital is in many respects an exercise of discretion as to what particular method yields the most fair and equitable result in each case. The Commission explained its use of the parent company's lag time by saying that it calculated Entergy's cost of equity based on parent-company figures. The Arkansas Public Service Commission is a quasi-executive, quasi-legislative and quasi-judicial body that regulates the state's public utilities, including electricity, natural gas, telecommunications and water firms. During their tenure, commissioners may not hold any other state, federal or civil office, and may not have ever been convicted of "embezzlement of public money, bribery, forgery, or other infamous crime.".
47, 813 S.W.2d 263 (1991) (holding that the appellant, in attacking a procedure as a denial of due process, has the burden of proving its invalidity). 2022.
23-4-202, which generally requires a utility to render bills in accordance with duly-filed rate schedules. The regulated utilities include electricity, natural gas, water, telephone and pipeline safety services. Ms. OGuinn is a native of Little Rock, Arkansas and earned her Bachelors of Science Degree in Environmental Engineering from the University of Oklahoma. Click here to contact us for media inquiries, and please donate here to support our continued expansion. Governor Asa Hutchinson announced on November 21st that Kimberly Lindsey OGuinn has been appointed to serve as an Arkansas Public Service Commission (PSC) Commissioner. 
Serv. readmore>, The Arkansas Public Service Commission's chairman, Ted Thomas, was a presenter and an award winner at the event. According to witnesses at the hearing, undistributed stores expense is the cost of housing materials, supplies, and other items pending their use on maintenance or construction projects. GATES & WOODYARD, P.L.L.C. Comm'n, 50 Ark.App. In instances where the utility's capital structure is unsound or out of step with industry standards, a regulatory commission may calculate the cost of capital based not on the utility's actual capital structure but on a hypothetical capital structure. 114 Scott St. The Entergy name and logo are registered service marks of Entergy Corporation and may not be used without the express, written consent of Entergy Corporation. Public policy. 260, 715 S.W.2d 451 (1986). Entergy does not argue in this case that it was wholly deprived of the opportunity to cross-examine witnesses. The Commission's Practice and Procedure Rule 3.11 provides that, upon agreement of the parties, the Chairman may authorize the filing of specific documentary evidence within a fixed time after the hearing. Comm'n, 23 Ark.App. Rate Advocacy Div. 213, 907 S.W.2d 140 (1995). readmore>, The Arkansas Public Service Commission and lawmakers address the statewide dispute over plugging in. Honeycutt v. Foster, 371 Ark. readmore>, The president of Delta Solar of Little Rock brings a background in business ownership, politics and advocacy to her new role. The Commission has wide latitude in conducting and expediting its hearings. Additionally, the chair may not have been judged mentally incompetent by a court, be a convicted felon or have ever been convicted of embezzlement or any other infamous crime.
We need not address the issue again in this context, as our previously stated reasons for affirming the Commission's treatment of the storm account apply equally here.
See Walnut Hill Tel. It is estimated that the cost to Entergy Arkansas will be at least $265 million annually.
Customer Service: (501) 455-9333 or email, Arkansas Bar Association Legal Hall of Fame, PSC Weighing $142M Entergy Settlement Offer on Grand Gulf, Mississippi Regulators Reach $300M Settlement With Entergy, Some Clouds, Mostly Sunny (Lance Turner Editor's Note), For Solar, A Threat Is Rising In the East, Appeals Court Ruling Backs Solar Development, As Natural Gas Prices Hit 14-Year High, Shale Awaits, Entergy Pares Rate Increase Tied to Natural Gas Costs, Entergy Follows The Sun, Along With U.S. Steel, Natural Gas Prices Drive Entergy Rate-Increase Plan, Entegrity Solar Farm to Energize UAs Fayetteville Campus, SWEPCO Seeks Approval for New 72-MW Solar Facility, Dont Expect Oil and Gas to Drill Us Out of Crunch, Delta Solar's Katie Niebaum: Nation Moving to Clean Energy Economy, CenterPoint Ordered to Credit Arkansas Ratepayers $10.4M, 2nd Wind Farm Serving Arkansas Swepco Customers Now Online, Simmons' $100M Digital Bet Pays Off by Luring Customers, As Prices Rise, Hospitals Suffer At Old Pay Rate, Banks Find Ways to Resist Great Resignation', It's White vs. Daters as Split Of Civil Engineers Hits Court, Galvanic, Another Prospector, Finds Lode of Lithium in Arkansas Brine, Memphis-Based Central BBQ Among Tenants at New Fayetteville Development, Update: Walmart to Buy 4,500 EVs from Bentonville Neighbor Canoo, Cameron Smith, Recruiter and NWA Business Leader, Dies at 71, Mercy to Invest $500M in Next Phase of NWA Expansion, A Light(house) Retirement for Former Walmart Exec. One commissioner is designated by the governor as chairman and serves in that capacity until their six-year term as commissioner expires.[4]. 5)Copyright 2007 - 2019 Arkansas Public Service Commission. Ballotpedia does not curate or endorse these articles. Entergy witnesses did testify that incentives promote efficiency; are a reasonable cost of operation; are common in the industry; and attract and retain talented employees. Rate Advocacy Div., supra; Bryant v. Ark.
However, a PSC Staff witness testified that Entergy should have been treating storm restoration costs as a normalized expense rather than allowing a negative balance to accumulate in hopes of recovering it in a subsequent rate case. Further, we defer to the Commission's expertise in declaring that a legitimate operational expense should have a direct ratepayer benefit before being included in rates.
Where the Commission has cited reliable data, supported by substantial evidence, we have affirmed its determination that a particular revenue adjustment was reasonably known and measurable. 7. Nat. Entergy does not adequately explain to this court the relevance of the preferred stock percentage or why it affects the D/E ratio. According to Entergy, the hypothetical ratio recommended by the PSC Staff and the Attorney General was based on a sample of ratios from comparable utilities. But, the Commission was naturally concerned about how ratepayers and the utility would fare under the riders' implementation, particularly the new PCA Rider. Therefore, the lag time between declaration and payment is only a few days, which, if used to calculate working capital, would result in a low dividends-payable balance in favor of Entergy Arkansas. 16 denied in all pertinent respects. By law such rates must allow public utilities the opportunity readmore>, With war in Ukraine driving a global energy crisis, Entergy Arkansas Inc. has turned to the sun exclusively for new electricity generation. Begins Crafting CPP Strategy, SPP, MISO, PJM States Join Opposition to Clean Power Plan, Clean Line Starts Online Petition for DOE Tx Approval, More Articles Tagged with 'Arkansas Public Service Commission', FirstEnergys Top Executives Face Job Reviews, Low PJM Capacity Prices No Bargain, Coal & Gas Generators Say, Planners, Developers: Transmission not Keeping Pace with System Needs, DER Fundamentals 3-Part Series: Technologies, Planning, and Optimization. Pub. But, be that as it may, a ratemaking proceeding is generally not the place to satisfy past, unmet expenses, however prudently incurred. Fax: (501) 683-3670 The Commission established a ROE of 9.9%. In any event, two PSC Staff witnesses explained that dividends payable should be included as a zero-cost liability, and the Commission had the latitude to accept their testimony. The cost of debt is readily ascertained by reference to the interest rates paid to creditors. Pub. [3], The office of chairman is authorized by Arkansas statute. See Ellsworth Nichols & Francis Welch, Ruling Principles of Utility Regulation at 315-19 (Supp.1964). Eric Skrmetta, a commissioner of the Louisiana Public Service Commission, is the current president of the E-RSC.
We therefore decline to reverse on this point. The Commission approved the inclusion, which Entergy argues is the result of a technical error..
Under these circumstances, we decline to reverse the Commission. Bryant v. Ark. However, it cites no testimony from its witnesses to this effect. While SPP says it is continuing to analyze the 1,500 pages in the Environmental Protection Agencys Clean Power Plan, some stakeholders in the RTOs 14-state footprint wasted no time taking action. See Pub. Serv. However, ratemaking is a legislative function, and res judicata has little application; any rate order may be superseded by another. 07-129-U, was apparently opened to implement the AER and for other purposes. The Commission also, via Docket 07-129-U, dispensed with its December 31, 2008 sunset of the riders. The Arkansas Public Service Commission (PSC) ordered a $5.67 million rate decrease for Entergy Arkansas, Inc., an electric utility that serves approximately 670,000 customers in the state.
See Assoc. In any event, use of a hypothetical capital structure should not foreclose the Commission's duty to utilize whatever reasonable figures, actual or hypothetical, it deems necessary in appropriately exercising its discretion, and the Commission is free, within the ambit of its statutory authority, to make the pragmatic adjustments which may be called for by particular circumstances. As part of the regulatory process, the commission's administrative judges hold hearings and receive testimony from various stakeholders -- industry representatives, experts, consumer advocates, etc. In the present case, Entergy's projected capital structure was 44/56 debt-to-equity. 262, 229 S.W.3d 553 (2006). The E-RSC is comprised of representatives of the retail regulatory agencies for Arkansas, Louisiana, Mississippi, Texas, and the City of New Orleans. We observe first that the issue is very likely moot, given the Commission's modifications of its rulings in Docket 07-129-U. These utilities provide Comm'n, 69 Ark.App.
Ballotpedia features 360,858 encyclopedic articles written and curated by our professional staff of editors, writers, and researchers. Given the Commission's reasoning and our limited standard of review, we are unwilling to reverse on this basis.7. Pub. Phone: (501) 682-2051 readmore>, Arkansas Business Publishing Group We can discern no rational basis for using a proxy lag time instead of Entergy Arkansas's actual lag time to calculate the value of dividends payable as a zero-cost liability.
The agency
R. 3.14 (requiring the Chairman to set a briefing schedule upon finding that the filing of briefs is appropriate).
See Assoc. See La.
193, 286 S.W.3d 712 (2008). In addition to samples from comparable companies, witnesses relied on Entergy's own historical D/E ratios and the ratios of the parent corporation. readmore>, Hydraulic fracturing revolutionized production after being applied to shale formations, including the Fayetteville Shale in Arkansas. 595, 751 S.W.2d 1 (1988). The PSC has wide discretion in choosing its approach to rate regulation and we do not advise the Commission on how to make its findings or exercise its discretion. To explain, a company has use of dividends payable in the lag time between the declaration of dividends and the payment of dividends to shareholders. 10, finding that Entergy's revenue requirement was excessive and should be reduced by approximately $5.67 million, effective June 15, 2007.1 Entergy petitioned for rehearing, which the PSC's Order No. Entergy nevertheless contends that the $47 million in storm costs was a proper component of its revenue requirement because the costs were legitimately incurred. Among the items included by the PSC in this case as a zero-cost liability were dividends payable. Entergy also argues that the dividends-payable balance was miscalculated. This statute pertains to effective dates of rate increase, and the present case involves a rate decrease. The Commission declined, ruling that such a recovery would constitute single-issue ratemaking and retroactive ratemaking. The Commission ruled that the cost of premiums would be split fifty-fifty between shareholders and ratepayers. Entergy Arkansas is not a publicly-traded company and does not declare dividends to any shareholders other than its parent corporation, Entergy Corp. See Swink v. Lasiter Constr., Inc., 94 Ark.App. Rather, it asked the Commission to allow it to recoup cost overruns from previous years.
See Assoc. State legislature | readmore>, Thursdays ruling marked the second straight year that Centerpoint Energy Resources Corp., doing business as CenterPoint Energy Arkansas Gas, has been ordered to grant credits after excessive charges. ENTERGY ARKANSAS, INC., Appellant, v. ARKANSAS PUBLIC SERVICE COMMISSION, Appellees. The board also determines property taxes for public utilities and carriers. There are no particular qualifications required for the office of chair, though individual commissioners must have resided in the state for five years and be a qualified elector.
She subsequently served as an Environmental Engineer at the Oklahoma Department of Environmental Quality. In its order, the Commission went to great lengths to analyze the testimony of all witnesses on this point and accepted the testimony of the Attorney General and Staff witnesses regarding a need for apportionment of the incentive costs. The blog site is for educational purposes only, as well as to give general information and a general understanding of the law. However, the Commission relied on testimony from the PSC Staff and the Attorney General, who said that part of the expense should be borne by shareholders as the primary beneficiaries of insurance. Reports and other utility related information, can be found at our 4. It's all the innovations that make the energy we Comm'n, 522 F.3d 378 (D.C.Cir.2008). Consumer Utils.
For the reasons stated in this opinion, we reverse and remand the Commission's orders in part for recalculation of working capital in light of our ruling on dividends payable.
The Between the Lines blog site should not be used as a substitute for legal advice from a licensed professional attorney in your state. Through its
readmore>, The array would provide enough power for about 12,000 homes. However, the Attorney General's witness testified that it is not good public policy to include one hundred percent of incentives in rates because, if employees earn their bonuses, shareholders are doing well and can afford to pay them.
Upon reviewing the subject testimony, we cannot say that the Commission erred in reaching the above conclusions. Entergy cites Ark.Code Ann. 3. However, the PSC Staff witness explained in detail why no error occurred, and the Commission exercised its prerogative in relying on his testimony. Comm'n, 50 Ark.App.
According to witnesses, the company was equity-heavy (and thereby costlier to finance), and the ratio represented a significant departure from comparable companies' as well as Entergy's own prior D/E ratios. and tomorrow. The particular amount of working capital allowance, along with the particular methodology used to derive that amount, is a matter of educated opinion, expertise, and informed judgment of the Commission and not one of mathematically demonstrable fact. We therefore decline to hold that the Commission acted arbitrarily. v. Ark. It may therefore charge rates sufficient to permit it to recover a reasonable rate of return. Entergy appears to argue that, for the Commission to impose conditions on a utility, there must be witness testimony that such conditions are required. 
