The New Orleans City Council Utilities Committee this week will consider a resolution to collect millions of dollars from Entergy New Orleans but still allow construction on a proposed $210 million dollar power plant to proceed in New Orleans East.
"The resolution on the agenda is a potential settlement, based on concessions offered by Entergy and requested by a number of advocates throughout the process," reads a joint statement from council members Helena Moreno, Jay Banks, and Joe Giarrusso. "First, Entergy will pay a $5 million fine that will predominantly be used to tackle the power crisis at S&WB, and then further, Entergy will commit to a number of concrete improvements to the NOPS plant that pave the way for cost-effective technological and sustainable advancements."
The fine is a result of Entergy's "astroturfing" scandal, when a consultant hired by Entergy paid people to speak at public hearings in support of the proposed power plant. Entergy denied involvement and fired the consulting firm, but internal documents later indicated Entergy New Orleans president Charles Rice knew about and approved of the effort to present fake grass roots support.
The resolution will also direct Entergy New Orleans to work with the New Orleans Sewerage and Water Board on the water system's power issues, using much of the $5 million to address those needs.
"These upgrades will provide substantial cost savings to New Orleanians - most of whom are customers of both Entergy and S&WB - because the Entergy fine will come directly from the company's profits and cannot be recouped from ratepayers," the council members said.
"The resolution also modifies the NOPS plant in the following ways: first, it imposes cost protections for the ratepayers, ensuring that customers do not shoulder out-of-control costs during the construction process. Second, Entergy will submit to stipulated and rigorous maintenance requirements to ensure the plant doesn't decay as Entergy's distribution network has. Third, Entergy will commit to a reoccurring, focused review of new technologies to modify or supplant NOPS with battery storage or other peak-demand response technologies as they become practical and cost-effective. We believe these changes to NOPS represent real advancements that protect Entergy customers financially."
