Entergy offers to install 500 kW natural-gas generator at Port Arthur Civic Center under cost-share program

Entergy representatives briefed the Port Arthur City Council on Aug. 12 about a proposal through the utility's PowerThru program to install a 500-kilowatt natural-gas generator at the Civic Center.

Program details: Entergy's Greg Gilbo described a turnkey installation in which Entergy would own, install and maintain the generator and automated transfer switch; the host customer (the city) would pay a portion of the equipment and lifetime operations-and-maintenance cost via a monthly line item on its bill. Entergy's preliminary estimate for a 500 kW unit and associated interconnection was about $957,000 total; the host share shown in the presentation was $484,000 before selecting payback-term options. City staff would choose amortization from one to 20 years; longer terms reduce monthly payments but extend the capital-recovery period.

Natural gas and operations: Gilbo emphasized that the generator runs on natural gas (Entergy covers fuel costs in its program allocation) so it avoids mid-storm diesel refueling logistics. The meter remains in front of the interconnect, so Entergy said the customer sees no change in electric rates when switching between grid and generator power.

Emergency use and capacity: Entergy noted the Civic Center's historical peak demand is about 361 kW and a 500 kW unit would cover likely needs during outages. City staff said the Civic Center sheltered about 600 people during Hurricane Harvey; council members emphasized the generator's benefit for emergency operations.

Flood-elevation and platform costs: Council members raised Port Arthur's flood risk. Entergy said it was obtaining a flood-elevation requirement and that a raised platform could be required; Entergy presented a vendor estimate of roughly $295,000 for a raised platform (preliminary) that would increase the total project cost. City staff and Entergy said the platform cost could be rolled into the payment schedule or the city could install the platform separately.

Next steps: Entergy asked council to authorize the manager to negotiate a formal agreement; if the parties reach terms, the agreement would return to council for approval. Gilbo said equipment lead time is roughly 55 weeks as a planning estimate but could be shorter on a smaller generator.

Ending: Council did not vote on a contract at the meeting but signaled interest and asked staff to pursue negotiations while clarifying flood-elevation and platform options.