Entergy Files Plan To Recover Storm Damage

ALAN SAYRE

NEW ORLEANS (AP) — Entergy Corp. is proposing the use of revenue bonds backed by surcharges on Louisiana customers' bills to pay for about $420 million in costs for restoring power following hurricanes Gustav and Ike last year, according to a regulatory filing.

Entergy Louisiana is asking the Louisiana Public Service Commission to recover $267.4 million in costs, plus another $200 million to replenish its storm reserve. Entergy Gulf States Louisiana wants $152.6 million and another $90 million for its storm reserve.

In its initial PSC filing in May, the two Entergy units said the reserve funds — established after hurricanes Katrina and Rita in 2005 — had kicked in $229.5 million to help with damage from Gustav and Ike.

If the full amount is approved by the PSC, Entergy Louisiana customers would see an increase of about $2.41 per 1,000 kilowatt hours, while Entergy Gulf States Louisiana customers would pay about $1.86 per 1,000 kilowatt hours, Entergy said.

By using bonds, Entergy Louisiana customers would save $49.5 million to $139.7 million, while Entergy Gulf States Louisiana customers would save $25.7 million to $88.5 million, Entergy said. Savings would depend upon interest rates when the bonds are placed.