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    UD-18-07: ENO’s Application For A Change In Electric And Gas Rates In The City Of New Orleans

    Council Docket UD-18-07, established via Resolution R-18-434, considers Entergy New Orleans’ (“ENO”) September 21, 2018 revised rate application for a change in electric and gas service rates, new services and new rate schedules applicable to electric and gas service (“Combined Rate Case”).

    Rate cases are proceedings used to address the costs of operating and maintaining a utility system and the allocation of those costs among customer classes.  ENO’s Combined Rate Case filing represents the first rate case since Algiers joined the ENO system.

    This Combined Rate Case proposes to establish a single, uniform electric rate structure for all New Orleans residents.  ENO’s Combined Rate Case filing only represents the company’s proposal.  The Council is tasked with making a determination on ENO’s filing and considering a number of rate case components, including but not limited to:

    (1)     a new combined electric rate structure which realigns the revenue requirement associated with non-fuel capacity and long-term service agreements (“LTSA”) from certain riders to base revenue and recover the cost of advanced metering infrastructure (“AMI”);

    (2)     contemporaneous cost recovery riders for investments in energy efficiency/demand response (also referred to as demand-side management or DSM”), incremental changes in capacity/LTSA costs, grid modernization investments, gas infrastructure replacement investments, and related costs; and

    (3)    formula rate plans (“FRP”), one for electric operations which incorporates a proposed decoupling mechanism as required by the Council and one for Gas operations.  ENO anticipates that its proposed Combined Rate Case will decrease its revenues by approximately $20 million per year overall and its proposed gas rates would decrease its revenues by approximately $142 thousand per year. 

    On November 7, 2019, the City Council adopted Resolution R-19-457 resulting in the settlement of gas and electric rates, including but not limited to:

    (1)    Freeze of the current minimum customer charge;

    (2)    Customer participation in a ‘green option’ to purchase more clean energy;

    (3)    Creation of sustained investment in the Council’s nationally-acclaimed Energy Smart program; and

    (4)    Mitigation of Algiers customer rate increase throughout its transition into the ENO service territory.

    Pertinent docket deadline dates were as follows: 

    • November 5, 2018 - All interested persons wishing to intervene in this docket were required to  file motions to intervene with the Clerk of Council no later than November 5, 2018, with objections to intervention requests filed within five days of such requests;
       
    • Discovery Period – The period of discovery commenced from the date of the adoption of the docket’s procedural Resolution (October 4, 2018) through 8 calendar days prior to the date of the Evidentiary Hearing (June 2, 2018).  Responses to data requests were made on a rolling basis and due in hand within 10 calendar days of receipt.  Parties were encouraged to submit data requests and responses electronically.  Objections to data requests were required to be filed within 5 calendar days of receipt; 
       
    • February 1, 2019 - Direct Testimony of Intervenors and Advisors due; 
       
    • March 22, 2019 – Rebuttal Testimony of ENO due; 
       
    • April 26, 2019 – Surrebuttal and Cross-Answering Testimony of Intervenors and the Advisors due; 
       
    • May 24, 2019 – Rejoinder Testimony of ENO due; 
       
    • June 17, 2019 – June 21, 2019 - Evidentiary Hearing; 
       
    • June 28, 2019 – The Hearing Officer must certify the record of these proceedings to the Council; 
       
    • July 26, 2019 – Initial briefs due; 
       
    • August 9, 2019 – Reply briefs due; 
       
    • August 2019 - Effective month of rates: The rates approved in this proceeding will be effective as of the first billing cycle August 2019 even though a Council decision may not be issued by that time.  ENO will make the necessary adjustments to customer bills retroactively to the first billing cycle of August 2019 to reflect the appropriate amounts due based on the Council approved rates; 
       
    • November 7, 2019 - the Council adopted Resolution R-19-457 (“Rate Case Resolution”); 
       
    • December 6, 2019 – ENO filed a Verified Petition of Entergy New Orleans for Appeal and Judicial Review of, and Stay or Injunctive Relief from Resolution R-19-457 of the Council of the City of New Orleans (“Appeal”) in Civil District Court for the Parish of Orleans; 
       
    • February 20, 2020 – The Council adopted Resolution R-20-67 authorizing a settlement between the Advisors and Energy New Orleans, LLC as to specific tax issues presented in the Combined Rate Case UD-18-07 and amending Resolution R-19-457 (Council’s November 7, 2019 adoption of the Combined Rate Case Resolution and Order); 
       
    • March 6, 2020 – ENO was directed to convene a working group composed of the Advisors, ENO, and Intervenors to explore appropriate cost mitigation measures relative to ENO’s GIRP infrastructure costs; 
       
    • April 20, 2020 – Per Judge Gulin’s 2/21/2020 Order granting ENO’s request for extension of time, on April 20, 2020, ENO was directed to propose, for Council consideration, a rate of gas distribution pipe installation and dollar investment that is required to maintain the safe operation of ENO’s gas system including potential measures to mitigate the identified impact on ratepayers.