New Orleans City Council talks $100M electric grid improvements

NEW ORLEANS (WGNO) — A committee meeting of New Orleans City Council was held Tuesday in which members of the Climate and Sustainability Committee approved a resolution that would allow for more than $100 million in electrical grid improvements.

The projects are a part of the council’s resiliency docket filed after Hurricane Ida in 2021. They will mark the largest single upgrade to the grid in New Orleans history.

“Today, we are taking advantage of about $53 million of federal money, which is a 50% match, meaning that ratepayers only have to pay 50% of this single largest investment,” said Andrew Tuozzolo, chief of staff for Council President Helena Moreno.

Entergy New Orleans had proposed a $1 billion plan made up of hundreds of distribution-strengthening projects, spanning over 10 years, with ratepayers footing most of the bill.

“Certainly, people will see these bill effects,” said Courtney Nicholson, an Entergy New Orleans executive. “The point is that this plan that we have presented is cheaper for customers than the alternative, which is dealing with storms as they come, dealing with repairs as they come.”

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Some local organization leaders said Entergy’s proposal is the more efficient plan.

“Spending the money today is a proactive way to move forward,” said Dan Mills with the Home Builders Association of Greater New Orleans. “If we spend $800 million, we reduce the cost of recovery we’re spending less money in the long run.”

Others said Entergy New Orleans lacks the accountability and follow-through to successfully execute such a large plan.

“I’m just really concerned about how you all move this thing forward, what can be done, lessons learned to get this company to do what it should do for the people of New Orleans,” said Monique Harden with Deep South Center for Environmental Justice.

Ultimately, council members deferred all remaining projects in Phase 1 of the resilience plan but amended the resolution to consider additional projects by community organizations.

Congressman Troy Carter said he has worked closely with the Biden Administration to prioritize New Orleans residents.

“It’s exciting to see these funds put into motion by Council President Moreno and the entire City Council for a more inclusive, resilient future for all of us. With these investments, we are fortifying our electrical grid against the escalating impacts of climate change, fostering community resilience and committing to social equity,” said Carter.

The resolution to approve these projects now moves to the full council for consideration.

If approved, customers can expect to see a $1.50 increase per month, starting in 2027.

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