Bond commission approves Entergy plan to borrow for storm repairs

By Julie O’Donoghue
Contributing Writer

(lailluminator.com) — The State Bond Commission signed off on Thursday of last week on a plan to let Entergy Louisiana cover its storm recovery costs through a $3.2 billion bond sale that its customers would pay back over the next two decades.

The commission’s approval is contingent on Louisiana’s Public Service Commission also supporting Entergy’s proposal. The commission, which regulates most utility companies in the state, is expected to vote on the matter in February, according to bond commission staff.

Entergy customers should expect to pay an average monthly surcharge of $9.56 for approximately 20 years if the bond sale proposal is approved, said Jody Montelaro, vice president of public affairs for Entergy Louisiana.

The surcharge would not apply to the customers of Entergy New Orleans, which the Public Service Commission does not regulate. Montelaro said New Orleans customers will eventually see additional charges, though it’s not clear what form they will take.

Entergy says it needs the money to pay for damage sustained during hurricanes Laura, Delta and Zeta in 2020 and a 2021 winter storm. It will also go to increasing storm reserve funds that were drawn down after Hurricane Ida in August.

Entergy Louisiana said the cost to its customers would be even higher if the company wasn’t pursuing a bond sale. If it had to make up for its weather-related expenses through a traditional rate increase, Entergy said it could cost customers an extra $13.40 per month.

Gov. John Bel Edwards asked the federal government to permit the state to use federal funding to pay down storm-related debt for Entergy and other utilities. If that occurred, customers might not have to bear as much of the storm damage costs.

The federal government has not traditionally allowed its recovery money to be used to pay off financial obligations of private companies like Entergy.

Louisiana Senate President Page Cortez, who sits on the bond commission, said he wanted to make sure the Public Service Commission is ultimately “responsible” for approving Entergy’s proposal.

“It’s a large amount (of money),” Cortez said.

Louisiana Illuminator (www.lailluminator.com) is an independent, nonprofit, nonpartisan news organization.

This article originally published in the January 24, 2022 print edition of The Louisiana Weekly newspaper.