Restoration charge depends on customer use

Published 6:58 pm Sunday, February 18, 2018

<p class="p1"><strong>On my Entergy bill I had about a $6 increase on storm restoration charges. Why the increase, and who approves this fee?</strong></p><p class="p2">“The storm restoration charges vary by customer as they are based on a customer’s usage,” Entergy spokesman Chip Arnould wrote in an email.</p><p class="p2">“The rate applied is the same, but each customer’s usage is unique. Due to unusually cold weather we have experienced here in south Louisiana this winter, many customers have used more energy to keep their homes warm.”</p><p class="p2">The storm charge, a combination of assessments to cover past hurricane-related repair and restoration costs, will be on bills until the mid-2020s.</p><p class="p2">The money from the assessment — approved by the state Public Service Commission — goes to the Louisiana Utilities Restoration Corp., which was created in 2007 to fund disaster recovery work through, the authorizing law says, an “alternate financing structure” designed “to minimize costs charged to ratepayers.”</p><p class="p2">According to a legislative auditor’s report released in May 2016, the LURC issued $244 million in restoration bonds to Entergy Louisiana in fiscal year 2015 and $71 million in bonds to Entergy Gulf States Louisiana, now part of Entergy Louisiana.</p><p class="p2">No bonds were issued in fiscal year 2016, according to the latest report, released Feb. 22, 2017.</p><p class="p2">But, the report says, the LURC that year paid $36 million in interest and $138 million toward the principal for three Entergy Louisiana bond issues and $16 million in interest and $57 million in principal obligations for three Entergy Gulf States Louisiana bond issues.</p><p class="p2">LURC restoration charges collected over the last several fiscal years, according to legislative auditor reports:</p><p class="p3">2016 — $163,857,706 from Entergy Louisiana; $71,669,962 from Entergy Gulf States Louisiana.</p><p class="p3">2015 — $160,121,964 from Entergy Louisiana; $67,897,592 from Entergy Gulf States Louisiana.</p><p class="p3">2014 — $141,164,474 from Entergy Louisiana; $62,604,791 from Entergy Gulf States Louisiana.</p><p class="p3">2013 — $145,591,868 from Entergy Louisiana; $64,025,764 from Entergy Gulf States Louisiana.</p><p class="p3">2012 — $141,508,266 from Entergy Louisiana; $63,340,432 from Entergy Gulf States Louisiana.</p><p class="p3">2011 — $132,024,726 from Entergy Louisiana; $60,133,535 from Entergy Gulf States Louisiana.</p><p class="p3">2010 — $102,064,559 from Entergy Louisiana; $42,762,474 from Entergy Gulf States Louisiana.</p><p class="p3">2009 — $70,251,965 from Entergy Louisiana; $29,066,818 from Entergy Gulf States Louisiana.</p><p class="p5"><strong>For more info:</strong> <a href="http://www.entergy-louisiana.com" target="_blank">www.entergy-louisiana.com</a>; <a href="http://www.lpsc.louisiana.gov" target="_blank">www.lpsc.louisiana.gov</a>; <a href="http://www.lla.la.gov" target="_blank">www.lla.la.gov</a>.</p><p class="p4">l</p><p class="p6">The Informer answers questions from readers each Sunday, Monday and Wednesday. It is researched and written by <strong>Andrew Perzo</strong>, an <em>American Press</em> staff writer. To ask a question, call 494-4098 and leave voice mail, or email informer@americanpress.com.</p>

Email newsletter signup