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PSC approves interim Entergy Hurricane Francine cost recovery despite objections
Summary
The commission approved Entergy Louisiana’s request for interim recovery of Hurricane Francine costs (roughly $182M total, with about $152M distribution capital) after debate on allocation and prudence; staff and Entergy argued the interim measure would avoid roughly $13M a year in carrying costs.
The Louisiana Public Service Commission voted to approve Entergy Louisiana’s request for interim recovery of Hurricane Francine-related costs, a decision commissioners described as balancing customer protection and company liquidity.
Entergy sought roughly $182 million in recovery of storm-related costs, including about $152 million in distribution capital and roughly $29 million in operating and maintenance expenses. Staff recommended that the commission exercise its original jurisdiction under Rule 57 to consider the interim relief and impose safeguards: any interim increase should be subject to refund, bonding requirements and final prudence review.
Larry Han, speaking for Entergy, told the commission that the company’s interim proposal was intended to limit carrying costs on customers, saying the interim recovery “will effectively help customers avoid approximately $13 million a year of carrying cost” that would accrue if recovery waited until the conclusion of a full prudence review. Commissioners asked detailed questions about bill impacts (Entergy’s witness estimated about $0.80/month gross for a 1,000 kWh residential customer and a roughly $0.47/month offset from a concurrent Grand Gulf divestiture credit, yielding a net estimated change near $0.33/month), allocation between customer classes, and potential credit-rating impacts.
Commissioner Lewis voiced concerns and opposed the motion; other commissioners expressed caution but ultimately voted in favor. The roll-call vote was 4–1 in favor of accepting staff’s recommendation for interim relief with the conditions read into the record.
Staff emphasized that any interim charge would be subject to full prudence review and that the order approving interim relief would not preclude subsequent adjustments. The commission directed staff to require proof of bonding and updated tariffs before Entergy may begin charging any interim rider.
The decision moves the docket forward with a framework for interim relief while reserving final determination until the prudence review is complete.
