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PSC approves multiple non-opposition financing requests and certifies Magnolia capacity purchase
Summary
The commission approved staff recommendations to express non-opposition to several utility financing requests (Point Cap, Northeast Louisiana, Baton Rouge Water, Louisiana Water), ratified prior interventions related to MISO matters, and approved Entergy's uncontested Magnolia 10-year capacity purchase agreement for 290 MW.
At its business session the Public Service Commission approved a series of staff-recommended non-opposition letters and ratified interim staff interventions, then accepted an uncontested settlement approving Magnolia Power LLC's 10-year capacity credit purchase agreement (CCPA) for 290 megawatts.
Staff said the requests were published in the Commission's bulletin and attracted no interventions. The items approved included:
- Point Cap Electric Membership Corporation (docket S-37227): staff recommended a letter of non-opposition to a roughly $30 million, five-year loan from the Federal Financing Bank for capital improvements, subject to the Commission's standard loan conditions. Commissioners publicly thanked Point Cap for pursuing low-interest federal funding.
- Northeast Louisiana Power Cooperative (docket S-37329): staff recommended non-opposition to a roughly $4 million CoBank loan (5-year fixed, 30-year amortization) to refinance higher-cost variable debt; staff said there would be no immediate effect on rates but future FRP or rate-case review may address impacts.
- Baton Rouge Water Works (docket S-37377): request to enter a note purchase agreement comprising approximately $30 million in senior notes; staff recommended non-opposition with conditions and noted potential impacts on future rate reviews.
- Louisiana Water Company (docket S-37378): request for approximately $7 million in senior notes; staff recommended non-opposition and cautioned the transaction could affect future rates and be reviewed in subsequent proceedings.
Commission staff also asked the Commission to ratify interim interventions and filings in RTO/MISO dockets taken under delegated authority to meet short deadlines; the Commission ratified those actions.
On generation procurement, staff recommended approval of an uncontested stipulated settlement in Entergy Louisiana's application to certify the Magnolia Power LLC capacity credits purchase agreement. Staff concluded the Magnolia CCPA, a 10-year contract for 290 MW commencing June 1, 2025, serves the public convenience and necessity and is eligible for cost recovery so long as Entergy acts prudently. The Commission approved the uncontested settlement.
In each financing approval, staff emphasized that transactions were subject to the Commission's standard loan conditions and that potential rate effects would be handled in future FRP or rate cases as necessary.
