Louisiana could require utilities to pay more for storm repairs | New Orleans CityBusiness

The Louisiana Public Service Fee is drafting an order to require Entergy and different investor-owned utilities to pay 20% of storm repairs, as an alternative of placing your entire invoice on ratepayers.

PSC Commissioner Foster Campbell requested the fee’s employees to draft the order after confronting Entergy CEO Leo Denault about growing earnings, $1.2 billion in dividends paid to the corporate’s shareholders final yr, Denault’s current $1 million pay increase and his household trip to Vail, Colorado throughout Hurricane Ida as prospects struggled with out energy.

Commissioners requested Denault throughout his first look earlier than the PSC since turning into CEO in 2013 whether or not Entergy would voluntarily assist cowl a few of roughly $5 billion in storm damages, as an alternative of passing your entire value on to the corporate’s 1.1 million prospects.

These prospects are anticipated to pay roughly $16 extra per thirty days for 15 years to get well the prices, as required by state legislation, however commissioners highlighted the corporate’s questionable spending in a bid to decrease that burden. Entergy has obtained greater than $3 billion by bond gross sales to get well restore prices, and the corporate is in line to obtain one other $2 billion, however Campbell prompt it must be much less.

“It actually troubles me that y’all don’t have any pores and skin within the recreation, however I’ve an answer,” Campbell stated. “I would like 20% to go to the ratepayers. That’s a small portion” of the $2 billion.

“I believe ya’ll should put again in $400 million again towards the ratepayers,” he stated, noting the excessive fee of poverty in Louisiana. “Would you comply with that?”

“No, I’d not,” Denault stated. “I believe we have to undergo the method and see the place we come out. … We have to ensure that the corporate continues to have the monetary flexibility to have the arrogance of the capital markets to have the ability to reply throughout these occasions.”

Denault highlighted the corporate’s investments in enhancing effectivity, a shift towards extra renewable vitality, Entergy’s charitable contributions and advocacy in Congress to assist safe aid for purchasers.

He additionally mentioned Entergy’s efforts to brace in opposition to future storm harm as methods the corporate is working to maintain prices decrease for purchasers.

Commissioner Craig Greene informed Denault “we need to see you worth your buyer as a lot as we signify them” and prompt “we have to do higher.”

“Our goal is to create an setting the place the purchasers are getting the outcomes they want and we need to ensure we handle our enterprise to match,” Denault stated. “It’s going to enhance the service ranges … and along with that we expect that it’s actually going to assist drive the financial improvement of the state.”

New Orleans Metropolis Council President Helena Moreno additionally weighed in on the revelations to The Advocate about Denault’s $17 million annual compensation, increase, journey to Vail and the corporate’s rising earnings at a time when ratepayers are struggling.

“The truth that the pinnacle of the primary company throughout one of many largest storms to ever hit his territory went off to Vail a pair days earlier than and stayed there by the storm and its aftermath and wasn’t there together with his group, I assumed was very stunning and regarding, as effectively,” she stated. “I believe the purchasers could be involved about this.”

Moreno, who oversees utilities within the metropolis, one of many few locations exterior the PSC’s authority, additionally signaled help for Campbell’s proposal to claw again 20% of Entergy’s subsequent storm compensation for ratepayers, based on the information web site.

“It might not be capable of stand as much as authorized muster,” Moreno stated, “however perhaps it brings Entergy to the desk to a minimum of be capable of give you further choices fairly than simply say to the ratepayers, you pay for all of it.”