September 2, 2008
Mississippi Attorney General Jim Hood has escalated his feud with one of the state's largest energy providers. As energy prices rose over the course of the summer, Hood charged Entergy Mississippi concealed information about its business practices and subjected consumers to unfairly excessive costs.
"In the wake of sharp increases in Entergy's fuel-cost adjustments that hit our citizens hard this summer, and because of cases in Louisiana, where Entergy has been ordered to refund millions in overcharges, it is my statutory duty and right to investigate these practices in Mississippi," Hood said. "We have asked Entergy to provide us information for our investigation, but they have refused.
"My question to Entergy is: If you have nothing to hide, then why not release these documents?" Hood said.
Hood described Entergy's practices as a "shell game," in which the public utility buys electricity and fuel for Mississippi at inflated rates from its sister companies in other states and then overcharges Mississippi customers. The law requires the company to buy energy at the cheapest price, "but in reality, they're just buying it from themselves." Hood contends.
In Louisiana in recent years, Entergy has been ordered to repay more than $100 million to ratepayers who had been overcharged by the company in two separate cases going back to 2000. In addition, Louisiana's efforts to recover the money has resulted in additional savings of more than $150 million for customers.
"For decades, Entergy Mississippi has operated under the premise of 'just trust us, we know what's best for you.' But secrecy is never best when it comes to the pocketbooks of hardworking Mississippians who struggle each month to keep their lights on," Hood said.
Specifically, the Attorney General's Office has asked Entergy Mississippi for pricing information along with information about its buying and selling practices primarily over the past 10 years. Entergy has refused the request, asking a federal court to halt the Attorney General's demand, saying the office does not have jurisdiction in the matter.
"But I have news for Entergy. The law in this matter is on the side of ratepayers and this office is charged with protecting their interests," he said. "We are going to shine some light on these practices and allow our citizens to look inside the company that is supposed to be serving them. In coming days, we will provide additional information about Entergy that shows the extent of its scheme."
