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Louisiana Landowners Want Their Share of Entergy's Telephone Business Profits |
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A class action has been filed against Entergy Louisiana, Inc. and three sibling companies on behalf of Louisiana property owners who allege that the power utility conspired to illegally increase its profits by misusing fiber optic cables in easements on their land in violation of state and federal law. The action seeks unspecified compensatory and punitive damages.
In the early 1990s, Entergy began stringing fiber-optic telecommunications cables alongside its power lines as an internal communications system for the multitude of computers that help monitor and operate the company's power transmission grid. It did this with full permission from the landowners, all of whom were paid to sign right-of-way agreements with the company. The easements granted by the landowners allegedly only gave Entergy the right to use the communications network in its own business, though.
In 1997, Entergy started a joint venture with a telephone subsidiary of cable television giant Adelphia Communications Corporation to sell telephone service. Two years later, Entergy pulled out of the joint venture and began selling surplus capacity on its fiber-optic network to long-distance phone carriers, Sprint and MCI among them. The action alleges that the easements property owners signed do not cover Entergy's use of the fiber-optic cables for an external telecommunications business.
In fact, the action alleges that the utility's use of the fiber-optic lines for internal communications is completely within the scope of the original easement agreements. When Entergy began using the lines to sell telephone service, however, the action alleges that the utility should have negotiated and purchased new easement agreements with each property owner.
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