Entergy Louisiana is seeking to add a $5 surcharge to customer’s bills to pay almost $2.1 billion in repair work following hurricanes Laura, Delta, and Zeta, and February’s winter storms. Entergy Vice President of Regulatory and Public Affairs Mark Kleehammer said the average customer will pay the monthly surcharge for the next fifteen years.
“The ask that is on the table right now would be a combined ask for all customers. We’ll subsequently be dealing with Ida, will be the same thing,” said Kleehammer.
Entergy presented their surcharge proposal before a Joint Legislative Commerce Committee meeting at the capitol Monday. Entergy customers already pay a monthly surcharge for damages caused by hurricanes Gustav, Ike, and Isaac. Charges for Gustav are expected to roll off next year.
Kleehammer said they expect to ask for a similar surcharge for Ida in the future.
“To the extent that southwest Louisiana was hit very hard last year our entire customer base will be picking that up, including in the north where they had damages from Laura and the same thing will happen for southeast Louisiana from this year,” said Kleehammer.
Entergy customers paid monthly surcharges for Katrina and Rita for approximately ten years.
Thibodaux Representative Bryan Fontenot suggested the utility provider dedicate a portion of their $700 million annual profits to an escrow account to pay for catastrophic repairs. He also questioned Entergy representatives about their preventative maintenance of utility poles and equipment.
“I want to ensure that Entergy is repairing those items that have been derogated and then when they have a storm and then ask me to pay for it because they didn’t do their preventative maintenance work. I think that’s crucial for the payer,” said Fontenot.
Entergy submitted the most recent surcharge request for the 2020 hurricanes and this year’s winter storms to the Public Service Commission for approval that won’t be voted on for at least eight months.
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