Parish says FEMA obligated $171 million for power plant rebuild; local matches and deductibles will require parish funding

Terrebonne Parish officials told the town hall that the Federal Emergency Management Agency (FEMA) has issued an obligation for the parish power plant and that the parish will need to provide local matching funds and meet a deductible before work can proceed.

The parish president said FEMA has “obligated” $171,000,000 toward the power plant. He added that the obligation carries a deductible of about $22,000,000 and that the parish will be responsible for a roughly $14,000,000 match. "We have to match it with a $22,000,000 deductible, and we have to have a $14,000,000 match the parish has to cover," he said.

Officials explained why the plant matters to daily operations. The parish president told residents the plant supports three critical facilities—the hospital, the water plant and the airport—and that the plant contributes to a regional pocket of roughly 200 megawatts stretching from New Orleans to Morgan City. In outages or feeder-line loss, he said the plant helps avoid service interruptions for critical facilities.

While temporary generators remain in place and have run extensive hours, officials estimated a multi-year rebuild timeline. The parish president said the plant rebuild is expected to take approximately three to four years and thanked state officials for assistance in advancing the federal funding obligation.

Officials urged residents to note that FEMA and insurance processes impose timing and match requirements and that the parish must secure local funds and insurance proceeds to access federal rebuilding funds. The parish said it will continue to seek state and federal help and will work on phased construction planning.