Louisiana 2016 2nd Special Session

Louisiana House Bill HR7

Caption

Requests an audit of Entergy's fuel adjustment charges assessed to consumers for the recoupment of costs incurred for the purchase and generation of electricity

Impact

The passage of HR7 could significantly enhance consumer protection measures by ensuring that charges assessed by electric utilities are just and reasonable. Should the audit reveal discrepancies or unfair practices, it could lead to recommendations for legislative changes to enhance oversight of utility pricing structures. This could potentially result in adjustments or refunds for consumers if overcharges are identified. The resolution underscores the state's commitment to scrutinizing utility practices that affect citizens' utility bills.

Summary

House Resolution 7 (HR7) requests a full-scale audit of the fuel adjustment charges assessed to consumers by Entergy Corporation in Louisiana over the past two years. This resolution is aimed at ensuring that the charges billed to consumers reflect fair and transparent pricing based on actual costs incurred for electricity generation. It seeks to investigate the status of any refunds owed to consumers, the interest applicable to those refunds, and the timeliness of audits conducted by the Louisiana Public Service Commission regarding these charges. The emphasis is placed on accountability and the protection of rate-paying consumers.

Sentiment

The sentiment surrounding HR7 appears to be supportive among consumer advocacy groups and those concerned about utility pricing transparency. Legislators leading the charge on the resolution believe that accountability is crucial to maintaining public trust in utility operations. Conversely, some stakeholders within the utility sector may view the audit as an unnecessary burden or fear that it could lead to stricter regulations. Overall, there seems to be a consensus on the need for clarification and potential reform regarding fuel adjustment charges.

Contention

Notable points of contention include concerns about the incentive structures for electric utilities to control fuel costs, given the recuperation mechanism facilitated by fuel adjustment clauses. Critics argue that this could lead to complacency in managing operational costs since utilities may pass these costs directly to consumers. Additionally, there is skepticism regarding the current systems in place to ensure thorough audits by the Louisiana Public Service Commission, and the need for enhanced oversight is a recurring theme in the discussions surrounding HR7.

Companion Bills

No companion bills found.

Previously Filed As

LA HB1934

Electric utilities; generation of electricity from renewable and zero carbon sources.

LA SB1192

Electric utilities; generation of electricity from renewable and zero carbon sources.

LA HB0200

Electricity generation-equity and consumer protection.

LA HB06524

An Act Concerning The Solicitation Of New Fuel Cell Electricity Generation Projects.

LA HB1315

State auditor; authorize investigative and audit costs incurred by contracted firms to be paid as percentage of the recovery.

LA HB811

Increase the generating capacity for customer-generated electricity

LA SB1336

Electricity consumption tax; rate adjustments.

LA HB2663

Electricity consumption tax; rate adjustments.

LA HB2838

Authorize the ordering of restitution to the state for reimbursement of costs incurred for misuse of public funds, and to create the State Auditor’s Public Integrity and Fraud Fund for use of said funds

LA SB761

Electric utilities; recovery of costs, rate adjustment clause proceedings, etc.

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