Alliance for Affordable Energy
  • Home
  • Who
  • What
    • Consumer Protection and Education >
      • Regulate Our Pipelines
      • Health Impact Assessment
    • Clean Energy >
      • Renewable & Clean Portfolio Standard
      • Transmission
    • Energy Efficiency >
      • EEFA
    • GS4GND
    • Past Work
  • How
    • New Orleans City Council >
      • Council Actions
    • New Orleans Dockets >
      • UD-22-05 Hurricane Ida Costs
      • UD-22-04 Demand Solutions
      • UD-22-03 Battery Storage
      • UD-22-02 100% Renewable
      • UD-22-01 Storm Reserve
      • UD-21-03 Resilience
      • UD-21-02 Zeta Cost Recovery
      • UD-21-01 Winter Storm Uri
      • UD-20-02 IRP (2021)
      • UD-19-01 RPS
      • UD-18-07 ENO Rate Case
      • UD-18-02 EV Charging
      • UD-18-01 Smart Cities
      • UD-17-04 Reliability
      • UD-17-03 IRP (2018)
    • LA Public Service Commission >
      • LPSC 2022 Election
      • Engage with the LPSC
    • Lawsuits & Appeals
    • Climate Initiative Task Force
  • News
    • The Watchdog
    • People's Power Hour
    • MISO Soup
    • Hurricane Ida
    • Events Calendar >
      • AAE House Party
  • Learn
    • Glossary
    • Timeline
    • Reports
  • Get Involved
    • Support
    • Newsletter
    • Intern and Volunteer >
      • Wimpelberg Intern Fellowship
    • Contact Us

The Watchdog

A blog on energy matters in Louisiana!

Briefing Statement for Council Candidates and Voters: Energy Regulation in New Orleans

7/20/2021

1 Comment

 
The New Orleans City Council has an extraordinary power -- the regulation of Entergy as an investor-owned utility company. ​Though the Council has a designated Utility, Cable, Telecommunications and Technology Committee (“UCTTC”) consisting of five members, major regulatory decisions are brought to the full Council for voting. Thus, all New Orleans City Council members are both legislators and regulators of a major electric and gas utility.

​For years, the Energy Future New Orleans Coalition has advocated for strong regulatory oversight of Entergy in order to lower costs to ratepayers, increase the reliability of electric service in New Orleans, and reduce greenhouse gas emissions that are the cause of the changing climate threatening the future of our city.
​
We have prepared this simple informational sheet to highlight some of the regulatory issues currently pending before the Council:​
Briefing Statement: Energy Regulation in New Orleans
Picture

Check out our Coffee Talk from today for an update on the latest at the New Orleans City Council. 


​Download the Briefing Statement on Energy Regulation in New Orleans Above​ or Read the​ Full Text Below.


​The New Orleans City Council has an extraordinary power -- the regulation of Entergy as an investor-owned utility company. In the United States, only the municipally appointed regulators in Washington, D.C. share the authority of the New Orleans City Council to set electric and gas rates and issue orders on electric and gas service. The City of New Orleans Home Rule Charter gives the City Council an enormous role in deciding the costs that Entergy charges to customers, the types of services it provides, and the kind of energy that powers our city. How councilmembers choose to exercise their utility regulatory authority affects the everyday lives of New Orleans residents.

For years, the Energy Future New Orleans Coalition has advocated for strong regulatory oversight of Entergy in order to lower costs to ratepayers, increase the reliability of electric service in New Orleans, and reduce greenhouse gas emissions that are the cause of the changing climate threatening the future of our city.

Though the Council has a designated Utility, Cable, Telecommunications and Technology Committee (“UCTTC”) consisting of five members, major regulatory decisions are brought to the full Council for voting. Thus, all New Orleans City Council members are both legislators and regulators of a major electric and gas utility. Accordingly, we have prepared this simple informational sheet to highlight some of the regulatory issues currently pending before the Council.
​

1. RENEWABLE AND CLEAN PORTFOLIO STANDARD (RCPS)

On May 20, 2021, the Council voted to adopt resolution R-21-182 under docket number UD-19-01, which established a Renewable and Clean Portfolio Standard, or RCPS, for New Orleans. This policy, one of a growing number of similar policies adopted by jurisdictions across the country, requires Entergy to satisfy an escalating percentage of its user demand through the use of renewable and clean energy technologies. The policy targets net-zero emissions by year 2040, and 100% carbon-free generation by 2050. The policy accomplishes this by allowing Entergy to purchase renewable energy credits (“RECs”) in the early stages of implementing the policy, the allowance of which gradually phases out in favor of energy efficiency and clean energy. The RCPS also provides incentives for local generation in order to encourage local investment in the new green economy.

Entergy’s efforts to weaken the policy began during its development, when the company advocated for the inclusion of unfeasible technologies such as carbon capture and sequestration in the portfolio of qualifying resources. Regulators will need to ensure that the integrated resources planning (“IRP”) process, discussed below, strikes the right balance between demand-side and supply-side technologies to meet the goals of the RCPS.
​

2. INTEGRATED RESOURCE PLANNING (IRP)

Integrated resource planning, or IRP, is a process whereby the utility determines the mix of demand-side (such as energy efficiency, weatherization, energy storage) and supply-side (such as the construction of a fossil fuel-fired generating plant or solar farm) technologies that it will use to economically and efficiently meet its user demand. The IRP process encompasses all aspects of the utility planning process, from generation to transmission and distribution. Docket number UD-20-02 pending before the UCTTC is the current IRP docket for Entergy New Orleans.

Regulators must ensure that Entergy’s modeling of the energy future reflects real-world conditions. Legacy coal- and natural gas-fired generation units are retiring at an accelerating rate, often years before past predictions. Meanwhile, energy efficiency and renewable energy continue to outpace large-scale fossil fuel generation in terms of cost-efficiency. The IRP process is a powerful tool for ensuring that New Orleans energy consumers receive affordable and reliable electricity service that does not compromise the health of their communities or the environment.
​

3. PRUDENCE

As a regulated monopoly, Entergy is guaranteed by law the opportunity to earn a reasonable profit. However, that profit must not come at the expense of efficient and reliable service to consumers. Even while Entergy reported a record-setting profit of $1.4B in 2020 during the midst of a global pandemic, ratepayers in New Orleans face an inordinate number of power outages, even on clear-weather days. This problem was amplified this past winter during the week of Mardi Gras, when a severe winter storm left thousands of residents without power. Regulators learned subsequently that Entergy shed far more load than it needed to during the storm, effectively freezing customers in their own homes unnecessarily. Meanwhile, the company has also neglected its existing nuclear generation fleet, such that the New Orleans City Council has joined an action filed before the Federal Energy Regulatory Commission alleging mismanagement of its Grand Gulf nuclear power plant in Mississippi. These imprudent utility costs should not be passed on to ratepayers, and regulators have a duty to ensure that does not happen. To that end, the UCTTC opened docket number UD-21-01 to investigate the prudence of Entergy’s decision-making during winter storm Uri.

4. COUNCIL UTILITY ADVISORS

The contracts of the Council’s utility advisors are the most lucrative contracts that it awards. The firms that currently hold these contracts have done so for decades, while New Orleans continues to battle high rates and unreliable service. Ideally, the utility advisors would provide a probative perspective on the utility’s filings before the Council, but instead the advisors often provide support to Entergy’s unpopular and costly decisions, such as the construction of the natural gas-fired plant in New Orleans East. The Council should investigate closely the value, or lack thereof, that the current advisors provide not only to the Council itself, but to New Orleans ratepayers.
​

5. RATE CASES

Periodically, the utility files a rate case, or a formal request to raise rates. Through this process, the utility must demonstrate that the costs it wishes to pass on to consumers are made prudently. If it cannot do so, the utility should not be allowed to pass the imprudent costs on to consumers. It is the job of the Council, as regulators guided by their advisors, and with the input of other stakeholders, to ensure that rates are fair and affordable for New Orleans ratepayers. As last winter’s storm Uri demonstrated, access to affordable and reliable electricity service is a necessity of survival, and should be considered a human right. As a City Council that doubles as the regulatory body for a major electric utility, the New Orleans City Council has enormous power to ensure that this right is afforded to New Orleans residents.
​

6. MANAGEMENT AUDIT

New Orleanians, who because of its legal monopoly are bound to deal with Entergy, have watched over the years as the company has astroturfed City Council meetings in order to push through an unpopular new gas plant, mismanaged its Grand Gulf nuclear power plant at a cost of millions of dollars to ratepayers, and freezing city residents in their own homes during the severe winter storm the week of Mardi Gras. All of this is compounded by routine reliability issues that occur even during periods of fair weather. At the March 2021 meeting of the UCTTC, Council President and chair of the committee Helena Moreno committed to an independent and comprehensive audit of Entergy’s management practices. The Council should proceed with this audit in order to ensure that New Orleanians are receiving a fair deal and that Entergy is abiding by best practices in its provision of electric and gas service.  
​

7. REDUCING ENERGY BURDENS

The average American household spends an average of 3% of their income on home energy costs. In 2020 over 18,000 households in Orleans Parish gave 20% of their income to Entergy. This is called an “energy burden” and New Orleans ranks among some of the very worst energy burdens in the country, as an effect of the intersection of high energy bills and high poverty rates. Considering the fact that a “housing burden” above 30% is considered excessive, and that factor includes utilities, this issue is compounding the affordability crisis in our city. While there isn’t a docket open to address this issue, the Council has the authority to develop solutions to tackle these burdens, ranging from more targeted efficiency programs, championing community solar, and looking to billing solutions that have proven successful elsewhere. 
​

​Cover image source
1 Comment

Bart Everson link
7/26/2021 10:12:02 am

Thank you for providing this valuable resource. It's very helpful as my campaign develops a coherent and comprehensive policy regarding energy and the need to hold Entergy accountable.

Reply



Leave a Reply.

    RSS Feed

    Archives

    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    July 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    October 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    December 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    January 2014
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012

    Categories

    All
    Alexandria Lia
    ALI
    ALI Meiner
    Andrew Wiseman
    Anniversary
    Bia Assevero
    CalGreen
    CCS
    Charles Rice
    Clean Energy
    CLECO
    CLECO FAQ
    CLECO Sale
    CLECO Sale Denied
    CLECO Stock
    CLECO Stock Prices
    CLECO Takeover
    Climate Change
    Clyde Holloway
    CO2
    Coastal Restoration
    Corruption
    Cost
    David Roberts
    Decoupling
    Dirty Energy
    Education
    Elections
    Energy
    Energy Efficiency
    Energy Policy
    Energy Smart
    Entergy
    Entergy New Orleans
    Environmental Risks
    EPA
    FERC
    Gas Plant
    Georgetown
    Government
    Grand Gulf
    Green Building
    Grid Failure
    GSREIA
    Gulf Of Mexico
    Health Risks
    Hurricane
    Hurricane Sandy
    Industrials
    Infrastructure
    IRP
    Land Loss
    Land-Use
    LA Public Service Commission
    LEED
    Liquid Air
    Louisiana
    Louisiana Public Service Commission
    LPSC
    MACQUAIRE
    Mayor's Office
    MISO
    Natural Gas
    New Iberia
    New Orleans City Council
    News
    NRDC
    Nuclear
    Oil & Gas Leases
    People Power
    Pipelines
    Power Grid
    Power Outages
    Power Plant
    Public Interest
    Regulation
    Reliability
    Renewable Energy
    RENEWABLE ENERGY POLICY NETWORK FOR THE 21ST CENTURY
    Resiliency
    Resolutions
    RTO
    Rulemaking
    Sacrifice Zones
    Sea Level Rise
    Solar
    Storage Solutions
    Subsidies
    SWEPCO
    TED Talks
    The Town Walk
    Town Hall Meetings
    Transmission
    Utilities
    Vicki Arroyo
    Watchdog
    Water Conservation
    Water Use
    WDSU
    Wetlands
    WWL Radio

    RSS Feed

Intern & Volunteer
If you want to be a frontline soldier on environmental protection, social justice, or environmental racism, come to Louisiana” –Gary Groesch, Founder of AAE
Calendar
View our events calendar ​for important upcoming community events and public meetings!
Support our work- ensure fair, affordable, and environmentally responsible energy for all.
501(c)3 IRS Notice

Alliance for Affordable Energy
Phone: (504) 208-9761
4505 S Claiborne Ave
New Orleans, LA 70175

Copyright © 2022 · Alliance for Affordable Energy
  • Home
  • Who
  • What
    • Consumer Protection and Education >
      • Regulate Our Pipelines
      • Health Impact Assessment
    • Clean Energy >
      • Renewable & Clean Portfolio Standard
      • Transmission
    • Energy Efficiency >
      • EEFA
    • GS4GND
    • Past Work
  • How
    • New Orleans City Council >
      • Council Actions
    • New Orleans Dockets >
      • UD-22-05 Hurricane Ida Costs
      • UD-22-04 Demand Solutions
      • UD-22-03 Battery Storage
      • UD-22-02 100% Renewable
      • UD-22-01 Storm Reserve
      • UD-21-03 Resilience
      • UD-21-02 Zeta Cost Recovery
      • UD-21-01 Winter Storm Uri
      • UD-20-02 IRP (2021)
      • UD-19-01 RPS
      • UD-18-07 ENO Rate Case
      • UD-18-02 EV Charging
      • UD-18-01 Smart Cities
      • UD-17-04 Reliability
      • UD-17-03 IRP (2018)
    • LA Public Service Commission >
      • LPSC 2022 Election
      • Engage with the LPSC
    • Lawsuits & Appeals
    • Climate Initiative Task Force
  • News
    • The Watchdog
    • People's Power Hour
    • MISO Soup
    • Hurricane Ida
    • Events Calendar >
      • AAE House Party
  • Learn
    • Glossary
    • Timeline
    • Reports
  • Get Involved
    • Support
    • Newsletter
    • Intern and Volunteer >
      • Wimpelberg Intern Fellowship
    • Contact Us