Entergy asks to bill customers storm fee for Hurricane Francine recovery • Unfiltered with Kiran

On By Littum

BATON ROUGE (Louisiana Illuminator) — Entergy Louisiana wants to add a new storm charge to its customers’ electric bills to recoup funds it spent on repairs from Hurricane Francine.

The company asks Louisiana Public Service Commission for permission to bill customers for more than $182 million to get it used after the storm.

For each customer, the storm charge will vary based on their monthly electricity consumption. Entergy discretion that would amount to about $1.10 per month for an average home using 1,500 kilowatt-hours of electricity or $0.80 for a home using 1,000 kilowatt-hours.

Francine made landfall on September 11, 2024 as a Category 2 hurricane in Terrebonne Parish, causing more than 250,000 Entergy customers to lose power over the next few days.

In his fee applicationthe company notes that it lost fewer than 1,000 distribution poles and “experienced minimal impact to its transmission system” during the storm. The utility used 8,000 crew members in its storm response and was able to restore power to 90% of customers within three days and 100% within six days.

Entergy credits recent grid hardening and infrastructure upgrades as factors that contributed to a quick recovery, which contrasts with the recovery after Hurricane Laura in 2020, which left parts of Louisiana without power for weeks.

Although Laura, a Category 4, was one of the most destructive storms to ever hit Louisiana, Entergy endured widespread criticism from customers and the Public Service Commission for what some considered a lack of foresight and preparation for the storm.

Entergy Louisiana spokesman Brandon Scardigli said the company’s infrastructure improvements made after Hurricane Ida in 2021 performed well during Francine last year.

“(Hurricane Francine) caused damage across our service areas, which underscores the urgent need for continued investment in building a more resilient power grid,” Scardigli said in an email. “…Starting to recover these funds now will provide much-needed capital to support critical investments in strengthening our infrastructure, reducing future disruptions and ensuring more reliable service to our customers.”

Entergy currently has enough money in its storm escrow account to fund all of the Francine restoration costs, Scardigli said, but using it exclusively would deplete its balance sheet, leaving the company exposed and underprepared for future storms.

Entergy Louisiana customers are no strangers to storm restoration fees. They are still paying Entergy for six other storms, including Hurricane Isaac in 2012, Laura, Delta and Zeta in 2020, Winter Storm Uri and Hurricane Ida in 2021.

Combined, these charges add up to about $20 a month for a home using 1,500 kilowatt-hours of electricity, according to information from the Public Service Commission.

Commissioner Davante Lewis, D-Baton Rouge, said he’s not entirely sold on the idea of ​​charging customers a storm fee to replenish a “rainy day” account and wants to further examine the need to fund storm recovery before the place of after a storm.

The commission will meet Jan. 15 and is expected to hire an outside consultant to review Entergy’s request, Lewis said. Such applications have almost always resulted in approval.

Next week’s meeting will also be the first for newly elected Commissioner Jean-Paul Coussan, R-Lafayette, who is filling a swing-vote seat previously held by moderate Republican Craig Greene.

Coussan, who was sworn in last week, said he is not yet updated on Entergy’s storm fee application, but he is meeting with PSC staff and attorneys for a briefing Thursday to prepare for the meeting.

Editor’s note: The following article from the author Wes Muller was originally published by Louisiana Illuminatoran independent, nonprofit, nonpartisan news organization with a mission to shine a light on how decisions in Baton Rouge are made and how they affect everyday Louisianans.

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