Council approves revised Entergy 'Power Through' financing after $365,000 escalation
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Summary
Council approved staff's recommendation to proceed with Entergy's Power Through generator agreement by increasing monthly payments to roughly $17,510 for a 10‑year term after Entergy identified about $365,000 in additional costs; staff said the generators reduce the risk of wastewater‑plant discharges and regulatory fines.
City staff returned to the council seeking approval to accommodate roughly $365,000 in additional project costs identified by Entergy under the "Power Through" generator program for the wastewater treatment plant. The program is a cost‑sharing arrangement in which Entergy front‑loads part of the generator cost and the city repays over time while Entergy may use the units to support the grid when needed.
Staff said the city's prior authorization in July anticipated a roughly $900,000 city investment with repayment over 10 years at about $12,500 per month. Entergy identified additional escalation items — materials lead times, certain capital labor charges and higher interest on loan items — raising the city's share by about $365,000. "Even with the increase, we're still only paying 40¢ on the dollar for these generators," a staff presenter said, noting Entergy would cover the remaining 60 percent. Staff presented two financing alternatives: (1) extend repayment to 20 years to keep the lower monthly payment; or (2) keep a 10‑year term and increase the monthly payment to about $17,510. Staff recommended option (2) and said it could be absorbed through reallocation of dump‑station funds and adjustments to lift‑station capital plans.
Council members asked about past enforcement fines tied to discharges and the financial tradeoffs; staff said the city had not experienced major enforcement of this kind but cited another city's recent multi‑million‑gallon discharge as an example of the regulatory risk. Council moved, seconded and voted to approve staff's recommended financing option and execute the contract under the revised terms.
The decision authorizes the city to proceed with the Power Through contract with the increased payment structure; staff said they will return with contract documentation and implementation steps as needed.
