[BR Today]

Recently, the Public Service Commission voted in favor of a rate increase for Entergy, that allowed them to add a small fee for all Louisiana customers. This fee is going to help 'rebuild' the damaged infrastructure in New Orleans that came as a result of Hurricane Katrina. It has been suggested that this is an unfair increase. After all, why would someone in Shreveport have to suffer an increase because of a situation in New Orleans? WJBO's Bill Profita had some interesting calls regarding this topic yesterday as did Kevin Meeks and Matt Kennedy on the show this morning. What are your thoughts and do you think its right that the Public Service Commission to ok this fee?

I voted no simply because I live in Denham Springs and why do I have to pay to rebuild the equipment that will run New Orleans? I heard this morning on 1150 that Entergy makes profits in the hundreds of millions of dollars and that benedetto received a nice bonus last year. Why isn't the money coming out of that instead of my pocket? I hope everyone comes together and people speak out against the PSC for allowing this.

[LSU Mike]

That spokesman this morning stated that none of the power companies were able to purchase insurance against this sort of things. Does that mean they shouldnt at the very least be putting money aside for this sorta thing? That would technically make them self insured, but it appears as if they waited for disaster to strike, then turned to the Public Disservice Commission for help. Shame on you Entergy for not helping yourself. Its a good thing that power isn't like television or telephone service these days. I feel like you'd be losing lots of customers after this news hit.

I for one don't mind helping out. If I can't take an extra 3 or 4 bucks outta my budget monthly, then i need to find a new job. What erks me though is just what Mike said. Just because they couldn't get insurance doesnt mean they couldn't open an account and put money in it each month sorta saving for a rainy day. The next time a storm comes through and someone's power goes out i promise you this topic will come back up. People perceive this as paying to reinforce the infrastructure. That's not the case at all.

Darrin Hoffmeyer

PS - Nice site

The utilities are legally entitled to recover the cost of restoring service after hurricanes from customers. The companies paid more than $700 million in late 2005 and 2006 to restore the electric system after Katrina and Rita. Customers of Gulf States are not paying for restoration work in New Orleans. The customers of each company are paying for the restoration work done by that company (Gulf States customers are paying for the work done in Lake Charles, Baton Rouge, etc. and Entergy Louisiana customers are paying for the work done in its territory). After Hurricane Andrew in 1992, utilities could not get cost-effective insurance for the type of damage caused by hurricanes. On the issue of "setting aside" money for storms, the companies were doing that. Unfortunately, Katrina and Rita costs almost immediately exhausted those funds. Part of the small rate increase approved yesterday is to set aside $250 million for future storms. What the radio host doesn't understand is that regulated utilities charge their customers only the cost to provide service plus a limited profit set by the PSC. As costs increase, the rates increase (but the profits of the utility do not). One of the confusing points about Entergy is that its parent company is involved in non-regulated businesses (such as nuclear plants in New England). Those non-regulated businesses generate profits that are not related to the utility business in Louisiana. On the other hand, if there are losses in the non-regulated businesses, then Louisiana customers are not on the hook for those losses.

looking at the quotes above makes me wonder. applying the logic that i should not have to pay for someone else (Shreveport vs New Orleans), then explain to me why i have to pay for programs like welfare, medicaid, social security (which evidently won't be around when i retire), etc. the bottom line is that we live in a society where we are sometimes asked to make sacrifices for the greater good. thus, i help fund programs for which i have never partaken of their services nor ever plan to. likewise, make considerable donations to my parish church and other non-profits. a few dollars a year to have the electric grid rebuilt in a matter of weeks seems like a VERY SMALL price to pay. Geezzz, how about if we all stop crying and perhaps buy one less cup of latte a month!!!!

I voted yes... we are going to have to pay for it eventually and we might as well pay now to build up some surplus than have to pay more the next time a major storm hits.

And this surplus is not just for hurricaines. As I understand it, this surplus would be used if a major storm disrupts power in the north part of the state just like it did in the south part of the state two years ago - that's why the whole state is being asked to pay this. So, it might not have been Denham Springs last time, but what if it is next time?

This isn't that big of a deal. I think Entergy does a great job keeping the lights on and getting my lights back on quickly if they do go out. It's only two or three dollars a month. If I have to not supersize one meal a month at McDonald's, I think I'll live.

[BR Today]

I voted yes... we are going to have to pay for it eventually and we might as well pay now to build up some surplus than have to pay more the next time a major storm hits.

And this surplus is not just for hurricaines. As I understand it, this surplus would be used if a major storm disrupts power in the north part of the state just like it did in the south part of the state two years ago - that's why the whole state is being asked to pay this. So, it might not have been Denham Springs last time, but what if it is next time?

This isn't that big of a deal. I think Entergy does a great job keeping the lights on and getting my lights back on quickly if they do go out. It's only two or three dollars a month. If I have to not supersize one meal a month at McDonald's, I think I'll live.

Can we be certain that this is an unbiased opinion? I wouldn't expect you to badmouth the company you work for.

[Red Stick]

The utilities are legally entitled to recover the cost of restoring service after hurricanes from customers. The companies paid more than $700 million in late 2005 and 2006 to restore the electric system after Katrina and Rita. Customers of Gulf States are not paying for restoration work in New Orleans. The customers of each company are paying for the restoration work done by that company (Gulf States customers are paying for the work done in Lake Charles, Baton Rouge, etc. and Entergy Louisiana customers are paying for the work done in its territory). After Hurricane Andrew in 1992, utilities could not get cost-effective insurance for the type of damage caused by hurricanes. On the issue of "setting aside" money for storms, the companies were doing that. Unfortunately, Katrina and Rita costs almost immediately exhausted those funds. Part of the small rate increase approved yesterday is to set aside $250 million for future storms. What the radio host doesn't understand is that regulated utilities charge their customers only the cost to provide service plus a limited profit set by the PSC. As costs increase, the rates increase (but the profits of the utility do not). One of the confusing points about Entergy is that its parent company is involved in non-regulated businesses (such as nuclear plants in New England). Those non-regulated businesses generate profits that are not related to the utility business in Louisiana. On the other hand, if there are losses in the non-regulated businesses, then Louisiana customers are not on the hook for those losses.

Thank you for that explanation. I am going to assume you are in some way affiliated with Entergy. I applaud you taking the time to explain this the way you did. Hopefully it will help others understand this a little better.

looking at the quotes above makes me wonder. applying the logic that i should not have to pay for someone else (Shreveport vs New Orleans), then explain to me why i have to pay for programs like welfare, medicaid, social security (which evidently won't be around when i retire), etc. the bottom line is that we live in a society where we are sometimes asked to make sacrifices for the greater good. thus, i help fund programs for which i have never partaken of their services nor ever plan to. likewise, make considerable donations to my parish church and other non-profits. a few dollars a year to have the electric grid rebuilt in a matter of weeks seems like a VERY SMALL price to pay. Geezzz, how about if we all stop crying and perhaps buy one less cup of latte a month!!!!

The programs you speak of (welfare, medicaid and social security) are not companies like Entergy. You are comparing apples to oranges here. The difference is that if I was a customer of a particular shipping company that had a fire at one of their terminals and lost alot of equipment, when they attempted a rate increase to make up for lost equipment I could simply start using another shipping company rather than paying their higher rates. That's not the case with this situation. The customers of Entergy only have that option unless they want to move or buy generators. It could be a 1 cent increase but with the monopoly on this service, its forced down your customers throats because they have no choice in the matter.

I think it's fair. Two dollars a month for the worst natural disaster ever? I can live with it. And we don't pay for New Orleans's problems. That is a separate company with a separate regulator. We don't pay for them, and they don't pay for us.