In the wake of Hurricane Ida, which rendered much of the city powerless for a week-and-a-half, the Council voted on September 23, 2021 to adopt motion M-21-342 to retain a independent consultant to perform a management audit of Entergy New Orleans.
The motion directs the Council Utility Regulatory Office (CURO)issue a Request for Qualifications (RFQ) for a consultant to conduct the audit. CURO issued the RFQ on December 8, 2021, and it has now been two months with no further action. We understand now that the RFQ has failed to garner a single response, a worrisome confirmation that the audit services market does not believe the Council has shown serious commitment to this effort.
Entergy continues to find new ways to demonstrate its contempt for the people of New Orleans and the Council as its regulator by following a philosophy of profit over people. Entergy’s actions are seldom based in innovation and resilience, but rather in avoiding the clear direction of the Council at the expense of the people of New Orleans. Most recently, Entergy has crawfished on a much-ballyhooed commitment to the City to construct an electrical substation to power the Sewerage and Water Board, potentially delaying or stranding a critical infrastructure project. While the Council has communicated its intent to make this project whole through other means, the fact remains that Entergy Corporation distributed $202 million in shareholder dividends mere days after Entergy New Orleans announced its withdrawal. Quite simply, Entergy has serious problems with its management priorities and execution. New Orleanians deserve better.
The lack of any response to the RFQ is unacceptable, and responsibility rests with the Council. It will take courage and competence to undertake the audit and confront the toxic management environment at Entergy. The Council must reissue the RFQ and proclaim unanimously its support for the process and its intention to use the audit results to create real change. Entergy’s long history of bad behavior and deeply-rooted problems warrant a healthy budget and a commitment of assistance from CURO and the Council, including data production assistance.
The prior Council took decisive action in the wake of Hurricane Ida, acting as a prudent and determined regulator, including making the commitment to a management audit of Entergy. Many of you who now occupy seats on the Council ran your campaigns on pledges to hold Entergy accountable. We urge you to keep your word, and to take up where the prior Council left off in the best interest of New Orleans’ overburdened ratepayers.
