Entergy New Orleans to increase rates by $49.5M in deal with New Orleans City Council
Under a deal several months in the making, Entergy New Orleans and the New Orleans City Council agreed to increase the utility’s rates by $49.5 million, supplemented by a credit resolution of approximately $17 million to offset the formula rate plan increase’s effects on customers.
It was less than Entergy had sought — the company’s original filing requested a $64 million increase. Overall, the plan also encompassed more than $220 million in capital investments Entergy New Orleans made into its electric and gas system to increase its reliability. These have included everything from a new 20 MW solar station to solar power purchase agreements, smart technology additions, and the replacement and modernization of aging gas infrastructure.
“We are committed to building a more reliable, resilient, and sustainable energy future for the customers and communities we serve throughout New Orleans,” Deanna Rodriguez, president and CEO of Entergy New Orleans, said. “As with every investment, we must balance customer affordability with our goals for a more storm-hardened, clean energy future. We appreciate the City Council’s role in ensuring a regulatory balance allowing for a financially viable company that can better serve the needs of the public while being stewards of the environment in an affordable way.”
As a result of the increase, Entergy New Orleans gas customers should see increases to their monthly bills of about $10 beginning in November. The $17 million credit arranged by the council will help electric customers offset bill increases for five months, from November 2021 through March 2022.
