Wednesday, April 22, 2020

Clinton: Entergy Rips Off City

The city of Clinton issued the following statement.

In an action that could impact other municipalities, the City of Clinton has filed a Formal Billing and Services Complaint against Entergy Mississippi, LLC (“Entergy”). In the filing, City officials are asking the Public Service Commission (PSC) to investigate and determine if Entergy’s charges in regards to street lighting are contrary to Mississippi Code §77-3-41.

Entergy is the provider of street lighting services to over 25,000 residents of the City of Clinton via billings to the City of Clinton. City officials are asking the Public Service Commissioners to investigate several areas of concern in billing documentation acquired by the City.

· Paying monthly fees for lighting poles that are decades old and far exceed any known depreciation schedule;

· Paying monthly fees for obsolete mercury vapor lights that should have long since been replaced by more energy efficient fixtures, and;

· Paying monthly fees for underground supply lines installed as far back as 1946.



It is the City’s position that Entergy’s charges for street lighting are contrary to Mississippi Code §77-3-41 as the rates are unjust, unreasonable, and materially excessive, particularly given that the amounts charged by Entergy are never reduced.

The City pays for this equipment in perpetuity, long past any reasonable useful life or statutory depreciation schedule.

One particular example involves 331 concrete poles installed in 1979 as best as the City can determine, for which the City is still paying a monthly fee. By the City's calculations the cost of these poles at the time of installation would have been approximately $104,642 yet the City has paid to date approximately $1,100,000 and is still paying every month. If installed at today's prices, the cost of the poles would be approximately $397,000.

It is the City of Clinton’s contention that street light assets fall within the residual asset class to which applies a 7-year depreciation period.

The City has found case law that indicates these assets should be on a 7-year depreciation schedule. The United States Tax Court has held that street light assets owned and depreciated by an electric utility do not constitute assets used in the distribution of electricity for sale and do not fall in asset classes subject to 15 or 20 year depreciation periods.

Additional examples of unjust, unreasonable, and excessive practices also exist. Billing documentation acquired by City leadership, indicates the City is still being charged for “Underground supply line (per foot installed after 1-1-1946)” and “30 ft. Class 7 Wood Creo Pole (installed prior to 1-1-1979)”.

“It is incomprehensible that Clinton is being charged for these items that have benchmark dates from 74 and 41 years ago, respectively. No specific installation data is provided for the vast majority of street lighting assets for which Clinton is paying,” stated Mayor Phil Fisher.

Prior to filing the formal complaint, the City sought clarifying information from Entergy, but thus far Entergy has not provided documentation or explanations that prove unequivocally why these charges are not unjust, unreasonable, and not materially excessive.

Mayor Phil Fisher believes that “these findings are unconscionable on its face, particularly given the City's position as a guardian of taxpayer dollars. We appreciate the Public Service Commission’s willingness to take a fresh look at this matter and bring clarity for the City and other cities across the Entergy service area.”







24 comments:

Anonymous said...

If you have internet service with Comcast and pay a monthly fee for your cable modem you are a fool.

Anonymous said...

and clinton fixes sewer lines also...

this is what city leadership looks like.

Anonymous said...

Sounds to me like that for the past several decades no one at Clinton City Hall has seen the need to question this.

Anonymous said...

If the City prevails, it will be Entergy consumers who foot the bill.

Anonymous said...

There goes the incentive for Entergy to quickly install lights on electricity poles to help deter crime. What's the over/under on how soon the Bold New City follows in Clinton's footsteps?

Anonymous said...

Good for Clinton! However, this means my home power bill will be going up again soon to offset Entergy’s loss of revenue from municipalities.

Anonymous said...

The PSC must approve any proposed rate schedules and rate increases for utilities. At this point, no elected official would allow Entergy to pass their losses from a City on to the residential ratepayer. That would amount to political suicide.

Anonymous said...

This is a major cash cow for Entergy. They have no leg to stand on and have been fleecing local municipalities for years. Go ask Jackson Councilman Stamps as he's been fighting with them for years.

BTW, all utilities do this....especially MS Power.

Anonymous said...

Energy cannot raise residential rates without a vote from the Public Service Commissioners. The Commissioners are elected and will not raise residential rates unless they want to get kicked out of office.

The amount in question is "smaller" than small potatoes to a multi-billion dollar company.

Anonymous said...

If the City is successful, look for an avalanche of similar claims by other municipalities.

Anonymous said...

Good for Clinton! Paying for decades old light poles and outdated light fixtures and underground lines is outrageous. Entergy should be required to immediately remove all light poles, rip up the outdated underground lines, and allow the City of Clinton to replace and maintain the light poles, service the light fixtures, and install modern underground supply lines. I'm sure Clinton having to provide the necessary personnel, trucks, equipment, and lighting inventory to service the city's lights would be cheaper. Right? Of course right.

Anonymous said...

It’s time for MS to follow the lead of states like Texas that have taken the power of monopoly control away from their energy providers and give the power of choice to their citizens. Entergy has become extremely difficult to deal with, as any professional that deals with them can tell you. Now cue Mara Hartmann to tell us in smug tones how Clinton is just lucky to have Entergy’s services.

Anonymous said...

"...can not raise RESIDENTIAL rates without..." Doesn't mean squat! They'll then add it to commercial accounts who will have to up prices to cover the increase. If you don't think utilities get what they want, you're mistaken.

Utilities "PAY WHAT I SAY"

Anonymous said...

Who pays for the poles if one is knocked down by a storm or unknown driver? Who replaces lights, services, etc. Does the City have to pay each time one is replaced or is this included in the monthly rent? I'm genuinely asking. I think its absurd to pay on them for this long, but all Entergy will do is rename and bill differently for a "utility line service fee" or something of the sort.

Anonymous said...

@11:34 AM says "The PSC must approve any proposed rate schedules and rate increases for utilities. At this point, no elected official would allow Entergy to pass their losses from a City on to the residential ratepayer. That would amount to political suicide."

Rate increases are handled through the PSC. Entergy knows how to handle Brandon Presley, who is basically running that show. Entergy will get what they want. Trust me on this.

Anonymous said...

Another big scam, Entergy gets paid a flat fee every month for all street lights. No matter how many actually work. They have no incentive to replace broken or non-working lights as they're getting their money regardless.

Anonymous said...

@1:17 Would think Entergy has insurance to cover their property in cases where specific person cannot be identified or held liable.

@1:33 Hopefully PSC will come through and do what is right on this one... then not allow Entergy to just slip in a rate increase somewhere else to cover for having this scheme exposed. Years of taking advantage shouldn't be rewarded with being allowed to shift burden somewhere else.

Anonymous said...

12:04, I don't think anyone has argued about whether the city should pay for infrastructure. The problem is with having to pay for the same infrastructure many times over, and in perpetuity.

12:22, if you think the power over energy was transferred to the people of Texas, you don't know anything about Texas.

Anonymous said...

I’m far, far from a left-wing environmentalist and view many of Obama’s eco initiatives as outright scams against the taxpayers (e.g. Solyndra), but I look forward to the time when solar and other sources can enable us to kindly tell Entergy and other utility monopolies to GFAD. The technology ain’t there yet, but it’s just a matter of time.

Anonymous said...

7:35, I wouldn’t get too excited or expect a reduction in your bill anytime soon. Entergy is building the largest solar farm in Mississippi right now. This way they can tell the public “you're already getting solar power so there’s no need to put up your own panels”. They gotta figure out a new scam to keep their failing business plan afloat.

https://markets.businessinsider.com/news/stocks/mississippi-public-service-commission-gives-green-light-to-1-000-acre-solar-farm-1029090821

Anonymous said...

Entergy has been doing this for years. It is a scam that is worse than a check cashing store.
City thinks they are getting a deal paying monthly fees and not having to front the whole amount.
The payments in perpetuity should be illegal.
Entergy is a licensed monopoly and can’t lose money.
Would be nice to see the PSC and courts throw all these contracts out.
But that is unlikely. Entergy has some stroke.

Anonymous said...

You can compare the practice of charging a monthly fee for the streetlight/streetlight pole with a scenario where you buy a car from someone and sign an agreement with that person to pay them a monthly fee. The monthly fee in this case thought includes not only the capital cost of the car but also the cost of the gasoline used in the car, the cost of any normal maintenance (oil changes, wiper blades, tires, etc.), and the cost of any abnormal maintenance (wreck repairs, replacement if stolen, etc.). The agreement also has provisions to replace the car when it gets old with a new one without a change in the monthly payment. This type monthly payment is much different than a simple 7 year depreciation payment schedule described by the City of Clinton.

Think Deeper said...

What people are not taking into account is that those poles have more than likely been replaced over the years due to automobile accidents and natural disasters, the fact the the bulb has been replaced countless times over the years, the fact that they lights use energy and the city needs to pay for what they use. There is more than likely a contract that the city agreed to at the time of installation. I hope this helps readers understand just a few of the items they may not have thought of.

Anonymous said...

The document attained by the City, which Entergy should provide if requested, but doesn't, outlines the charges by pole, fixture, brackets, bulb and maintenance. The costs challenged by the City are only the poles, which were installed between 1971 - 1979 and are still in use (dates stamped on them). Brackets, fixtures and bulbs were separate line items in the detailed billing. Cities only get a two page bill of charges for all lights, not an itemized 700 page bill like the one that fell into the City's lap.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.