FERC last week certified a settlement between Entergy Services and the Louisiana Public Service Commission in the corporation’s ninth annual bandwidth filing under its system agreement, saying it “resolves all issues of dispute” (ER15-1826).

Entergy filed the settlement in March. In April, FERC staff filed supporting comments and Louisiana PSC staff approved the agreement, which had been set for hearing and settlement procedures in October. (See FERC Sets Hearings for Entergy’s Cost Allocations.)

At issue was Entergy’s exclusion of its Arkansas subsidiary from the allocation of its operating companies’ 2014 production costs. The corporation’s cost allocation under its system agreement has been regularly challenged by regulators since it took effect in 2007.

Entergy’s six operating companies essentially operate as one system, although each has different costs. Payments are made annually by Entergy’s low-cost operating companies to the highest-cost company in the system, using a “bandwidth” remedy that ensures no company has production costs more than 11% above or below the system average.

– Tom Kleckner