FERC Affirms Initial Decision Regarding Entergy's Bandwidth Calculation Filing

On May 17, 2018, FERC affirmed an Initial Decision addressing a bandwidth calculation filing applicable to a seven-month period in 2005 filed by Entergy Services, Inc. on behalf of the Entergy Operating Companies ("Operating Companies"; collectively, "Entergy") in November 2016. 

In June 2005, FERC issued Opinion No. 480 determining that Entergy's System Agreement required that production costs be roughly equal among the Operating Companies (i.e., "cost equalization").  In Opinion Nos. 480 and 480-A, FERC held that the Entergy System was no longer in approximate production cost equalization and adopted a numerical bandwidth remedy.  The bandwidth remedy achieves cost equalization by disallowing any Operating Company from having production costs more than 11 percent above or below the Entergy system's average production costs.  In Opinion No. 480, FERC found that the bandwidth remedy should apply prospectively only starting in calendar year 2006, with the first