City Council to consider $1 million fine on Entergy for frequent power outages
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City Council to consider $1 million fine on Entergy for frequent power outages

Michael Isaac Stein |
October 23, 2019

After more than two years of investigations, the New Orleans City Council plans to vote on a resolution to fine Entergy New Orleans $1 million for its “inaction and omissions in mitigating” the thousands of power outages the city experiences every year.


After more than two years of investigations, the New Orleans City Council plans to vote on a resolution to fine Entergy New Orleans $1 million for its “inaction and omissions in mitigating” the thousands of power outages the city experiences every year. 

The council, which is responsible for regulating Entergy New Orleans, will vote on the proposed fine at its Wednesday utility committee meeting.  

The resolution represents the conclusion of a so-called prudence investigation that began last year in response to frequent outages the city experienced between 2013 through 2017. In 2013 and 2014, Entergy cut funding for maintenance and system improvements by millions of dollars. 

The number and duration of power outages has increased every year after 2013, when the disinvestment began, according to reliability measures provided by Entergy included in the resolution.

There were 2,599 outages between June 1, 2016 and May 31, 2017 alone, according to the resolution. Most of those occurred on fair-weather days, the council’s utility advisers found. And according to a report from an Entergy consultant, Quanta, roughly 41 percent were caused by equipment failures. 

“The Council further concludes that [Entergy New Orleans] did not act prudently in its reaction to the reliability crisis, which caused [Entergy New Orleans] customers pay a substantial price, measured not just by direct economic costs such as closures of businesses leading to lost profits, lost wages, and reduced tax revenue, but also by less tangible costs, including the physical discomfort caused by multiple outages and the uncertainty of knowing when persistent outages will end,” the resolution says. 

Credit by - The LENS

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