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Commission approves audit orders and swaps auditor assignments for next round of fuel audits
Summary
The commission approved proposed orders implementing independent fuel-audit recommendations for Entergy and Mississippi Power and authorized swapping audit assignments among qualified firms for the upcoming audit cycle.
Miss Dixon presented proposed orders implementing recommendations from the 2025 independent fuel audits and proposed auditor assignments for the next round of audits.
Dixon said the procurement auditing firm London Economics made 11 recommendations in its Entergy fuel-audit report; staff recommended continued review of most items during the coming audit year but required Entergy to file an action plan within 30 days on one recommendation concerning tracking of actual capital expenditures for the Sunflower solar facility.
On Mississippi Power, staff summarized a Bates White audit that contained six recommendations and recommended Mississippi Power file an action plan within 30 days addressing two fleet-operations recommendations (hourly documentation of minimum operating levels and tracking of out-of-merit dispatch costs).
Dixon also explained that the commission issued an RFP for auditors and received submissions from prior firms. Staff recommended swapping audit assignments so that new auditors provide fresh eyes: LEI and BDO would audit Mississippi Power (or Entergy depending on assignment swap described in the presentation) and Forvis and Bates White would audit the other utility (transcript contains the staff’s recommended swap and contract-term details). Commissioners asked about the bid process and how staff vets auditors; staff said proposals are publicized on the commission website and industry sites, and staff reviews prior work experience.
The commission approved the proposed orders requiring action plans and authorized selection of auditors by voice votes.
Why it matters: The orders require utilities to provide action plans on specific audit recommendations and set the roster of firms that will independently review fuel procurement and related operations in the next audit cycle.
Next steps: Utilities must file 30-day action plans on specified recommendations; the commission will execute contracts with selected auditing firms for the upcoming audit period.
