Entergy Corp. said Wednesday that revenue and profit surged in the first three months of the year, with utility executives attributing much of the gains to higher demand for heating caused by the blast of winter weather that hit the region in mid-February.
Entergy Corp. said Wednesday that revenue and profit surged in the first three months of the year, with utility executives attributing much of the gains to higher demand for heating caused by the blast of winter weather that hit the region in mid-February.
Entergy Corp. has agreed to pay $12 million to settle charges filed by federal regulators that it mishandled internal accounting.
The U.S. Securities and Exchange Commission said Friday that Entergy Corp., which is based in New Orleans, agreed to pay the fine.
The SEC alleged that Entergy had inaccurate controls when recording materials and supplies, despite employees and management consultants flagging the issue. Entergy “failed to establish a comprehensive process” to review the assets and record them accurately, the agency said.
“Internal accounting controls serve as a front-line defense in ensuring the accuracy and reliability of financial statements,” said Sanjay Wadhwa, acting director of the SEC’s enforcement division. “Investors rely on public companies, such as Entergy, to ensure that adequate internal accounting controls are in place. We allege that Entergy failed to fulfill its obligation in this regard.”
Entergy spokesperson Neal Kirby said the firm has “fully cooperated” with the SEC on the probe.
“Entergy has settled the matter with the SEC and has supplemented its existing inventory management practices by implementing additional processes and internal controls to address potential surplus inventory and will be working with an independent consultant to evaluate these enhanced processes and controls,” he said in a statement.
Entergy did not admit or deny the allegations as part of the deal, but agreed to pay the $12 million penalty and adopt changes to its accounting controls recommended by an independent consultant.
Entergy, Louisiana’s leading electric utility, has faced run-ins with regulators before. The company was targeted by a Department of Justice investigation announced in 2012 that probed whether it was unfairly wielding its monopoly power to crowd out competition. The probe was later dropped after Entergy joined a regional transmission organization.
Entergy in recent months has also settled long-running allegations of mismanagement of its Grand Gulf nuclear plant in Mississippi.
Editor’s note: This story was updated after publication to clarify the allegations against Entergy.
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