Entergy passes fuel purchasing exam
by Amy McCullough
Published: April 2,2010
Entergy Mississippi’s energy purchasing practices are above-board and guarantee to lowest costs to rate payers, said a consultant hired by the Mississippi Public Service Commission at a March 30 meeting.
Commissioners Leonard Bentz and Lynn Posey hired Colorado-based McFadden Consulting Group, which has audited more than 40 utilities nationwide, to perform the exam of Entergy. McFadden’s fee was $154,000.
Commissioner and Chairman Brandon Presley took issue with McFadden for not examining Entergy’s transmissions system in addition to looking at the company’s purchasing practices and procedures. Michael McFadden said a transmissions exam was outside the scope of what his company was hired to do.
Entergy has come under fired from the Attorney General for allegedly bilking rate payers by purchasing peak-time electricity from Entergy divisions outside Mississippi instead of from independent power producers (IPPs) who had cheaper prices. Purchasing power from IPPs costs the utility money and requires the utility to allow IPPs to send electricity along Entergy’s transmissions lines.
Presley said a portion of McFadden’s report saying transmissions complaints came from IPPs who “don’t want to invest in transmissions lines” sounded one-sided.
Posey and Bentz said they appreciated McFadden’s work. Bentz said he looked forward to working with McFadden in the future.
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