Louisiana does indeed need a grid that is ready to handle these supercharged storms. Louisiana also needs a more broad plan to protect people from the extreme heat and extreme cold we’re experiencing each year. The very reason this investment is needed is directly tied to the warming and rising oceans caused by emissions from companies like Exxon, Dow, and Shell.
Since 2020, the power system in Louisiana has required nearly $7.5 billion in storm restoration costs due to damage from hurricanes Laura, Delta, Zeta, Ida, and other un-named events. Entergy alone racked up over $5 Billion in storm costs in the span of just two years. These storm costs are passed onto customers through charges on their bills. It is clear the grid we have is not ready.
The Alliance has always advocated that an ounce of prevention (methodical investment in strengthening our system) is worth a pound of cure (expensive post-storm restoration). However, based on the fast speed of the process at the LPSC, we and other public commenters at the April meeting, requested a single month of pause before the Commission approved this new $1.9B spending package, which customers will see on their bills for years. Clear eyed decision making is critical, after all, when elected officials take votes impacting millions of people and billions of dollars.
Despite public requests for a delay for review and transparency, three of five Commissioners were apparently ready to approve the spending, which would have split the costs of the investment in equal thirds among residential, commercial, and industrial customers.
BUT in the final moments before a vote was called an amendment was added that quietly shifted responsibility of $304 million of the storm restoration package off of industrial customers, like Exxon, Dow, and Shell and onto the backs of residents and smaller businesses.
Without seeing the specific language or understanding the impact, the Commission accepted the amendment and voted 3-2 to approve $1.9 billion in new spending, with residents and small businesses carrying $1.6 billion (84%) of these costs.
To put a fine point on this perverse situation, as the climate crisis bears down on Louisiana, increasing the costs of everything from insurance to electricity, the companies that are driving these cost increases are skirting their responsibility to pay for them, pushing costs even higher for residents who are left to deal with the consequences.
This decision is only part of Phase I of Entergy’s multi-phase resilience plan. As proceedings continue The Alliance remains committed to advocating for transparency, affordability, and equity when it comes to planning our future grid. We’ll continue to uplift community voices and ensure the public’s best interests are represented.
