Griffin's Office Demands Entergy Cut Rates, Reversing Stance on Previous Utility Case

Arkansas Attorney General Tim Griffin's office is asking the Public Service Commission to lower the electricity rates charged by Entergy. The utility initially requested a $44.6 million rate increase but settled for no increase during negotiations. The state's top law enforcement agency argues that a decrease is warranted instead.

Doralee Chandler, a deputy attorney general, presented these arguments during a two-day hearing. She stated that a rate increase would result in unjust and unreasonable costs for customers. The AG's office is the only major party not agreeing to the current settlement. Other interested parties have accepted Entergy's proposal to maintain current rates.

This position contrasts sharply with the office's actions in 2024 during a rate case involving Summit Utilities. That natural gas provider sought a nearly 30% price hike. Negotiations reduced the increase to approximately 23%. Griffin signed off on the agreement as a unanimous joint arrangement on October 7, 2024.

Legislators criticized the 23% figure, prompting Griffin to request a new review three days later. The Public Service Commission denied his motion to delay the proceedings. The commission found that Griffin missed the deadline to object and failed to identify specific issues with the settlement during the allotted time.

The commission ruled that Griffin failed to establish good cause for extending the schedule. It noted that the attorney general did not file any testimony in opposition to the agreement. The body also stated that his participation in the agreement was irrelevant to its power to review the rates.

Because Griffin failed to adhere to the procedural schedule, the commission barred him from raising rate case issues during the hearing. He was not allowed to cross-examine witnesses or submit opposing testimony. The commission entered an order rejecting his motion to set new deadlines.

Summit Utilities ultimately raised its rates by 23.4%. This increase added more than $15 to monthly customer bills. Griffin's office is now positioned as a defender of consumer interests in the Entergy case. The utility company has dropped its initial request for a $44.6 million increase to a request for no change.

Griffin is expected to run for governor in four years. The 2024 Summit decision resulted in a significant cost increase for residents. The AG's office is now demanding a rate cut for Entergy customers. The commission is currently reviewing the state's arguments against the utility's proposed rates.