Entergy will pay its Arkansas affiliate $142.3 million under a settlement FERC approved March 21, the latest in the ongoing billing dispute over the utility’s Grand Gulf Nuclear Station (ER22-958, ER23-435, ER23-816, ER23-1022, ER23-1164, EL24-5). 

The company’s System Energy Resources Inc. (SERI) sells energy and capacity from the 1,443-MW nuclear plant in Port Gibson, Miss., to Entergy Arkansas and the utility’s three other operating companies under a cost-based formula rate. 

Grand Gulf’s Unit Power Sales Agreement has been the subject of complaints of overcharging by regulators in Arkansas, Louisiana, Mississippi and New Orleans since 2017. 

SERI said the new settlement is part of a $588 million deal filed in 2022. (See Entergy Offers Regulators $588M to End Grand Gulf Complaints.) 

FERC also approved a partial settlement over Grand Gulf last April. (See FERC OKs Partial Settlement in Entergy Grand Gulf Row.) 

In addition to the payment to Entergy Arkansas, the new settlement specifies that SERI will use a return on common equity of 9.65% in its monthly billings to the utility effective November 2023 and that no settling party can propose a change to the rate until at least June 30, 2026. 

SERI also agreed to use a capital structure with an equity ratio not to exceed 52%. 

The commission said the settlement was in the public interest because it was uncontested and appears to be fair and reasonable.