Opinion ID: 1666183
Heading Depth: 1
Heading Rank: 6

Heading: the facilities charge

Text: Exxon claims that it continues to pay the facilities charge stipulated in the 1984 revised contracts and that this charge is unreasonable and amounts to an overcharge entitling it to a refund and prospective relief. Since certain of the charges still being paid are not prescribed, we review the PSC rejection of this Exxon claim to determine whether it was arbitrary and capricious. We find that it was not. Our review of the record convinces us that the commission had a sufficient basis for its conclusion that the PSC approved rates charged by Entergy permitted an additional facilities charge and that the charge made was reasonable. The original and revised contracts between the parties were introduced into the record. Both before and after the 1984 revisions, the contracts stipulated for a monthly facilities charge computed at 1.67% of the original construction cost of line extensions and substations built especially for Exxon and used exclusively by Exxon. Testimony established that the assessment of a facilities charge is designed to protect other ratepayers from bearing the burden of facilities constructed to serve the needs of a single customer. Entergy presented evidence to substantiate that the 1.67% monthly charge is equivalent to its estimated costs for maintenance and replacement costs of the facilities, plus a fair return on the investment and a recovery of the construction costs. Exxon presented no evidence to rebut Entergy's claim that the 1.67% charge fairly represented its costs related to the facilities. Furthermore, PSC found that the PSC approved rates charged before and after the contract revisions, allowed such additional charges which inure to the benefit of the general ratepaying public. Any divergence between internal Entergy Service Regulations and the published rate schedules (which allow an additional charge in connection with remote facilities) is resolved in favor of the published rate, which has more specific application. PSC concluded that the facilities charges were not unreasonable and did not constitute an overcharge. The PSC findings affirmed by the district court are fully supported by the record in the case. The commission was not arbitrary and capricious in rejecting Exxon's claim for retrospective and prospective relief from the contractual facilities charge.