Entergy Arkansas overcharged Osceola for electricity by more than $4.4 million from 2007 through 2009, the Mississippi County community claims in a lawsuit filed last year in federal court.
The case was filed in U.S. District Court for the Eastern District of Arkansas, Jonesboro Division.
Osceola filed a motion for summary judgment earlier this month.
The city filed the suit after Union Electric, a Missouri-based wholesale customer of Entergy Arkansas, won a similar lawsuit against Entergy Arkansas.
The Federal Energy Regulatory Commission ruled in 2005 that Entergy Arkansas should pay cost-equalization charges to Entergy Corp.-affiliated companies in Louisiana. Osceola claims that Entergy Arkansas passed those costs to Osceola and Union Electric.
Osceola and Union Electric had the same contract with Entergy Arkansas, Osceola Mayor Dickie Kennemore said.
“Union Electric was overcharged and we basically filed Union Electric’s lawsuit,” Kennemore said.
In the Union Electric case,the commission found that Entergy Arkansas had recovered the wrong rate, said Dave Wilson, a North Little Rock attorney representing Osceola. Entergy Arkansas was ordered to pay more than $30 million to Union Electric, although Entergy Arkansas has appealed the decision.
Osceola was one of 17 intervenors that did not actively participate in the case be-fore the federal commission.
Entergy Arkansas also filed a motion for summary judgment this month, claiming, among other things, that Osceola already has settled its power issues.
“They are really trying to take two bites of the apple,” said Kimberly Bennett, Entergy Arkansas’ senior counsel. “They’re asking for refunds for rates they’ve already settled.”
Entergy Arkansas also said Osceola had the opportunity to raise the same claims in Union Electric’s case before the federal commission but declined to do so. Therefore, Osceola’s claim is barred because such claims cannot be litigated again, Entergy Arkansas said in its motion.
Osceola depended on the recommendation of Wilson and Chuck Banks of Little Rock, who also represents the city, to file the lawsuit, Kennemore said.
Osceola Municipal Light and Power Co. has about 3,600 customers and a revenue of $16.7 million last year. It no longer buys electricity from Entergy Arkansas.
Osceola is seeking $4.4 million plus interest and fees.
Business, Pages 21 on 02/25/2014