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New Orleans City Council fines Entergy $5 million, but votes to move ahead with controversial plant

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The New Orleans City Council today approved by a 7-0 vote a resolution that fines Entergy $5 million for astrotrufing public hearings during the approval process for a new power plant, and requires Entergy to commit to continually reviewing new technologies that can help the plant operate more efficiently. But it also allows work to progress on the natural gas-powered New Orleans Power Station in New Orleans East.

The decision followed hours of public comment that featured many people insisting the council should rescind the 6-1 vote that approved the plant last spring.


The resolution comes after Entergy revealed in May 2018 that a third-party contractor paid people to attend meetings and pretend to be grass roots supporters of the plant. Entergy at the time said it had no knowledge of the practice, known as astroturfing, and severed ties with the companies involved.

Then in October, the council's investigation into the scandal said Entergy's leaders either knew or should have known what was happening. The investigation uncovered text messages from then-Entergy New Orleans President Charles Rice that he would fund the astroturfing effort.

The revelations led to demands that the council cancel its approval of the plant and start over. But members of the council say despite the astroturfing, the need for a new plant remains and the plant as approved is the best solution, despite concerns residents have about environmental and health concerns.