Entergy files federal lawsuit over paid actors flap

A day after welcoming its new president and CEO, David Ellis, to take over the helm, Entergy New Orleans filed a federal lawsuit against the Hawthorn Group of Alexandria, Va., the subcontractor at the center of the “paid actors” scandal.

The lawsuit, filed last Wednesday, comes amid allegations from the New Orleans City Council that Entergy hired actors earlier this year to persuade the council to approve a proposed gas-powered plant in eastern New Orleans. After media reports of the paid actors surfaced, Entergy conducted its own investigation and contended that the Hawthorn Group crafted a plan to hire paid actors to pose as supporters of the opposed power plant without Entergy’s knowledge or approval.

However, an independent probe launched by the New Orleans City Council found that Entergy had in fact spearheaded the paid actors campaign and is seeking to impose a $5 million fine on the utility company.

In October, the City Council announced it was fining Entergy New Orleans $5 million after an independent report found the utility company paid actors to show up at public meetings in support of the new power plant in New Orleans East.

The New Orleans City Council initiated the investigation to determine whether Entergy, or some other entity, paid actors to attend and/or speak at the public meetings.

Entergy officials said after the report was released that the company takes “strong exception to characterizations in the third-party report that Entergy ‘knew’ about payments made by (The Hawthorn Group) and (Crowds on Demand) to individuals who attended or spoke at the City Council meetings.”

A spokesperson for Entergy said recently that while the company believes there is no legal basis for the fine, the company also does not want a “long and protracted legal proceeding” because it would not “advance the shared goal of moving forward for the benefit of New Orleans.”

Entergy is, instead, offering to donate $5 million to the City of New Orleans “as a sign of good faith, to resolve the issue in a constructive manner and reinforce our commitment to the New Orleans community.”

The City Council will have to review the offer from Entergy.

Helena Moreno, City Council vice president, said the $5 million fine only relates to the investigation into the paid actors.

“The council has full regulatory authority over (Entergy New Orleans) as a monopoly utility and we intend to exercise our authority to the fullest extent appropriate to protect the people of New Orleans,” Moreno said in a statement.

If the court rules against the Hawthorn Group, it could be required to pay the $5 million fine in addition to thousands of dollars spent by the council to fund its independent investigation of the paid actors campaign.

This article originally published in the December 17, 2018 print edition of The Louisiana Weekly newspaper.