Representing the Council of the City of New Orleans, and working in concert with the other four regulators of Entergy Corporation, members of the Firm participated in the management audit of Entergy Corporation’s affiliated transactions. The audit was performed pursuant to a Settlement Agreement between Entergy and the Council and certain other regulators.
The objectives of the audit were to determine if:
- Affiliate agreements, procedures and controls are appropriate to provide cost-effective service to the system operating companies;
- The accounting and allocation procedures and controls (that address cost allocation and cross-subsidization issues) are appropriate, fair and equitable;
- System operating companies are properly insulated from the adverse effects, if any, of non-regulated business activities;
- Adequate procedures and controls are in place to prevent improper disclosure of business or proprietary information by regulated companies to affiliates, their employees and employees of other system companies providing services to non-regulated businesses;
- An adequate “wall” of procedures and controls exists between regulated and non-regulated operations.