Entergy pulls $30 million in funding for new substation citing Hurricane Ida costs

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A plan for a more stable source of power for pumps that drain New Orleans during storms is in the air after Entergy said the promised $30 million has since dried up. Mayor LaToya Cantrell announced in June that a new substation would serve Council sewer and water. Officials said in June it would be online in time for the 2023 hurricane season, a schedule that is now under threat. but Entergy New Orleans was discussing the unusual step of financing a substation for the S&WB given its financial situation. As a result of these initial negotiations, Hurricane Ida hit Entergy New’s service area Orleans, which further strained the company’s financial position by having to fund large amounts of storm costs with uncertainty as to when and how these costs would be recovered. “We remain committed to helping the city upgrade the electrical infrastructure, and this includes assisting with the construction of the Carrollton substation if another source of funding is secured and/or after Entergy’s financial stability New Orleans is restored Discussions with the New Orleans City Council, the Mayor’s Office and the Sewerage & Water Board are underway to develop alternatives to achieve this important investment for the City of New Orleans as quickly as possible to pay for it, and Entergy says it will still help the project if the city can find other funding or if Entergy’s finances find a firmer footing.

A plan for a more stable power source for pumps that drain New Orleans during storms is on hold after Entergy said the promised $30 million has since dried up.

Mayor LaToya Cantrell announced in June that a new substation would serve the Sewerage and Water Board.

Officials said in June it would be online in time for the 2023 hurricane season, a schedule that is now under threat.

Entergy told WDSU in a statement, “Typically, clients like the Sewerage & Water Board are required to fund their own infrastructure projects, but Entergy New Orleans was discussing the unusual step of funding a substation for the S&WB given its financial situation.Following these initial negotiations, Hurricane Ida hit Entergy New Orleans’ service area, which further strained the company’s financial situation by having to finance large amounts of storm costs with uncertainty about the timing and mechanism for recovering those costs.

“We remain committed to helping the city upgrade the electrical infrastructure, and this includes assisting with the construction of the Carrollton substation if another source of funding is secured and/or after financial stability is restored. of Entergy New Orleans Discussions with the New Orleans City Council, the Mayor’s Office and the Sewerage & Water Board are developing alternatives to achieve this important investment for the City of New Orleans as quickly as possible. possible.”

The Sewerage and Water Board says it is looking for another way to pay for it, and Entergy says it will still help the project if the city can find other funding or if Entergy’s finances find a firmer footing.

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