JACKSON (AP) — Brandon Presley’s new to the job of public service commissioner, but it didn’t take him long to get the feeling something isn’t right.

The Mississippi Public Service Commission has ordered an investigation and audit of Entergy Mississippi’s recent quarterly rate increase, and the PSC has changed its policy so that every proposed increase in the future will face similar scrutiny.

Commissioners will hold a hearing for Monday on Entergy’s 28 percent rate increase that’s in effect until September. The company serves customers in 45 of Mississippi’s 82 counties, primarily in the western half of the state.

‘‘In my opinion, in the sixth months we’ve been in office, we’ve seen this is flawed,’’ Presley said. ‘‘We should not be seeing a 28 percent increase in Mississippians’ bills without a proper investigation and audit.’’

Presley said the commission also will investigate and audit Entergy Mississippi’s fuel purchasing practices to ensure residents aren’t paying more than necessary.

Company officials say a 120 percent spike in natural gas prices has forced the increase, which will cost the average Entergy customer nearly $26 a month.

The law allows utility companies to pass along fuel cost increases to customers, but they are not allowed to profit from those increases.

The companies file for fuel increases or decreases with the independent Mississippi Public Utilities staff, which evaluates the request and makes a recommendation. If the commissioners make no objection, the change goes into effect.



Presley said commissioners will now require notice of at least 20 days from a company that plans to increase rates so they will have time to call for an investigation or hearings.

Presley and fellow commissioners Leonard Bentz and Lynn Posey are not accusing Entergy or Public Utilities staffers of wrongdoing. Presley said they want to ensure the fuel cost increases have been properly vetted and will seek expert testimony during hearings that will include input from Entergy.

‘‘I think it’s a broken process,’’ Presley said. ‘‘We want to make sure that Entergy is buying the cheapest fuel possible and make sure the process is not being done sloppily.’’

Entergy Mississippi spokeswoman Mara Hartmann said company officials will respond to commissioners’ concerns at Monday’s hearing and see nothing out of the ordinary with the rate increase. She said while steep, the 28 percent spike is not unprecedented in times of volatile natural gas prices.

‘‘The company has not done anything it should not have done,’’ Hartmann said. ‘‘We’ve been doing this since the 1970s.’’

Entergy draws power from coal, nuclear power and oil sources along with natural gas. Hartmann said the company diversifies its fuels to ensure that a spike in the cost of one won’t cause untoward price increases.

Officials believe Entergy’s purchasing practices will stand up to scrutiny.

‘‘We have a very, very sophisticated process in place,’’ Hartmann said. ‘‘We’re monitoring prices of fuel not only daily, but hourly and even by the half hour.’’

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On the Net:

Mississippi Public Service Commission: http://www.psc.state.ms.us

Entergy Mississippi: http://www.entergy-mississippi.com



AP-CS-07-06-08 1415EDT