Orange council approves Entergy PowerThru agreement to add backup generators at two wastewater plants

Orange — The Orange City Council on July 8 voted to enter an agreement with Entergy under the company’s PowerThru program to install two Entergy‑owned backup generators at Wastewater Treatment Plant No. 1 and No. 2.

City staff said the proposal would place a 1‑megawatt generator and a 500‑kilowatt generator at the plants to provide emergency power and to support the grid during peak demand. The city presented cost estimates showing Entergy’s total project cost at about $2.3 million, with the city’s share — described by staff as roughly 40 percent — at about $900,000. Public works staff recommended a 10‑year recovery period, which the presentation estimated would result in a monthly payment in the neighborhood of $12,500 under the proposed terms.

The city said all payments would come from the water and sewer enterprise fund; staff emphasized that general tax revenues would not be used. During the presentation, a staff speaker noted the city planned to use approximately one‑third of annual dump station revenue (about $100,000 per year) and to delay some lift‑station rehabilitation to free cash for the repayment schedule. Staff also said the generators would have an expected lifespan of roughly 20 years and that Entergy would operate and maintain them even after the city’s repayment period ended.

The PowerThru program, as explained to the council, allows Entergy to site large generators at host locations to provide emergency service to the host and to support the regional grid during high‑demand periods. The city emphasized the proposal carried no upfront capital cost and that Entergy’s financing structure—subject to rates approved by the Texas Public Utilities Commission—would determine repayment amounts.

Council members asked questions about funding sources, whether taxes would be affected (staff said they would not), maintenance responsibility (Entergy), rate structure (a fixed rate approved by the relevant utility commission), and lead time for equipment (staff estimated about 50 weeks for the large generator). Staff described the project as meeting current Texas Commission on Environmental Quality (TCEQ) backup‑power expectations for wastewater facilities, noting the city had been operating without permanent backup generators and had relied on emergency rental units in past storms.

After discussion the council voted to approve the agreement. Staff said Entergy would move forward with procurement and site work once the agreement was executed.