The Louisiana Supreme court late last week overturned a Louisiana appeal court’s decision and reinstated the rulings previously made by the New Orleans City Council in the Gordon proceeding involving Entergy New Orleans, Inc..
The Mississippi attorney general has often publicly cited the Gordon case in his lawsuit against Entergy Mississippi, Inc. and has referred to this case extensively in his reasons for filing the suit against the company.

“We’re pleased with the high court’s decision, and we believe it is the right decision,” said John Mullins, vice president of customer operations for Entergy Mississippi, Inc. “The Court concluded that Entergy acted in good faith and with no intent to harm our customers, just as the City Council had previously concluded.

“Additionally, this decision demonstrates that although the AG tries to act as prosecutor and judge at the same time, mere claims of wrongdoing do not prove wrongdoing in our legal system.”

The Gordon case was based on allegations that Entergy New Orleans, Inc. had overcharged customers. The Council voted to have Entergy refund Louisiana customers $7.2 million (plus $4.1 million in interest). The decision was appealed to the 4th Circuit Court of Appeals, which increased the amount from $7.2 million to $34.3 million. The Louisiana Supreme Court’s ruling means the original New Orleans City Council decision will stand.

The issue that was the focus of the Louisiana Supreme Court’s decision was a claim by the plaintiffs that Entergy New Orleans had recovered certain costs through its fuel adjustment clause instead of its base rates. However, the Louisiana Supreme Court concluded that the Council had not found that its rules had been violated, and that even if the Council had found that its rules had been violated, the Council would not have been required to order a refund.

“This fully supports our argument that matters like these should be handled by the proper regulating authority,” said Mullins. “In this case the Supreme Court confirmed the findings of the New Orleans City Council, Entergy New Orleans’ regulators.”

Entergy Press Release
4/6/9