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    UD-18-07: ENO’s Application For A Change In Electric And Gas Rates In The City Of New Orleans (RE: 2021 Formula Rate Plan)

    Council Docket UD-18-07, established via Resolution R-18-434, considered 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 represented the first rate case since Algiers joined the ENO system and established a single, uniform electric rate structure for all New Orleans residents.  On November 7, 2019, the City Council adopted Resolution R-19-457 resulting in the settlement of gas and electric rates (“Rate Case Resolution”), 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; 
    (5)    Mechanisms ENO may recover costs related to the New Orleans Power Station (“NOPS”) per UD-16-02. 

    Post Rate Case Resolution filings and developments are as follows:

    • 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;
       
    • May 7, 2020 – The Council adopted Resolution R-20-112 granting ENO’s request to extend the deadlines to file the first Evaluation Reports pursuant to Rider Schedule EFRP-5 and Rider Schedule GFRP-5 to June 29, 2020. The Council unanimously approved ENO’s unopposed request to delay its 2020 FRP filing by 60 days until June 29, 2020 to allow ENO and the Council to gain a better understanding of the extent of the coronavirus pandemic, its adverse financial effects, and its future effects on customers and ENO;
       
    • July 2, 2020 – The Council adopted Resolution R-20-213 granting ENO’s request to extend the deadline to file the Evaluation Reports to August 13, 2020.  ENO filed and Council granted a Motion to Delay Its 2020 Formula Rate Plan Filing For an Additional 45 Days, from June 29, 2020 to August 13, 2020; 
       
    • August 12, 2020 – ENO requested another extension to file its 2020 Evaluation Reports from August 13, 2020 to September 14, 2020.
       
    • September 14, 2020 – ENO filed a request for an additional two weeks to prepare and file an Agreement-in-Principle to Revise the Formula Rate Plan filing dates and to implement other provisions contained therein;
       
    • September 28, 2020 – ENO filed its Motion to Approve the Agreement in Principle to Revise the Formula Rate Plan (“FRP”) Filing Dates and to implement other provisions contained therein.  As a result, ENO agreed to forego the 2020 FRP.  Instead, ENO will make its initial FRP Evaluation Report filing on June 30, 2021 based on a 2020 Evaluation Period, with a procedural schedule contemplating an FRP Rate Adjustment effective with the first billing cycle of November 2021.  The 2022 and 2023 FRP Evaluation Report filings will be filed on or before April 30th with procedural schedules contemplating an FRP Rate Adjustment effective the first billing cycle of September of the respective years. 
       
    • October 15, 2020 – The Council adopted Resolution R-20-344, approving ENO’s Motion to Approve Agreement in Principle to Revise the Formula Rate Plan (“FRP”) Filing Dates and to Implement Other Provisions contained therein.  Resolution R-20-344 included for the year 2021, a June 30, 2021 filing deadline for the Test Year 2020 Evaluation Reports; a September 15, 2021 or 75 days after ENO’s filing, as the deadline for parties to review the Evaluation Reports;  Years 2022 and 2023 shall have a April 30th Evaluation Reports deadline with Evaluation Reports due by July 15 of the filing year or 75 days after the filing whichever is longer.  In addition, Resolution R-20-344 amended Resolution R-19-457 to allow for the term of three-year Electric and Gas FRPs (Test Years 2020, 2021, and 2022), ENO’s authorization to utilize a hypothetical capital structure of 51% equity and 49% long-term dept as its Benchmark Return on Rate Base.
       

    2021 Formula Rate Plan

    • July 16, 2021 – ENO filed its 2021 Electric and Gas Formula Rate Plan (Evaluation Filing) for the twelve-month evaluation period ending December 31, 2020 (“2020 Test Year”) to initiate new electric and gas rates effective with the first billing cycle of November 2021.
       
    • October 1, 2021 – Deadline for Parties to file the Identification of Disputed Issues and Corrections to ENO’s 2021 Formula Rate Plan.
       
    • October 1, 2021 – The Advisors filed their Investigation and Review of Entergy New Orleans, LLC’s 2021 Electric and Gas Formula Rate Plans Evaluation Filing Report.
       
    • October 26, 2021- ENO made a filing pursuant to the Electric Formula Rate Plan (“EFRP”) Rider Schedule and the Gas Formula Rate Plan (“GFRP”) Rider Schedule which the Council approved and adopted via Resolution R-19-457 as well as the Agreement in Principle (“AIP”) via Resolution R-20-344. This filing implements changes to electric and gas rates that reflect adjustments to the Company’s July 16, 2021 EFRP and GFRP Evaluation Reports, after the Council Advisors and Intervenor’s review of the reports.
       
    • October 27, 2021 – Council adopted Resolution R-21-400 (Resolution and Order Directing Entergy New Orleans, LLC to Employ Certain Refund and Tax Credit Monies Toward Ratepayer Credits) where approximately $17.4 million in various ENO ratepayer credits are to be applied as five equal credits toward the calculation of Rider PPCR’s rates for each billing cycle November 2021, December 2021, January 2022, February 2022, and March 2022. 
       
    • January 14, 2022 – ENO filed a Request to Modify its Electric Rate Schedules to Expand Access to Electric Vehicle Charging Infrastructure.  This filing is under Council consideration in Council docket UD-18-01 (Smart Cities). 
       

    ​2022 Formula Rate Plan

    • April 29, 2022 – ENO filed its 2022 Formula Rate Plan (“FRP”) for Electric and Gas operations for the Evaluation Period ending December 31, 2021 and the Summary of 2022 Electric and Gas Formula Rate Plan Filings and Request for Waiver of Requirements and Other Relief on behalf of Entergy New Orleans, LLC (“2022 FRP Filing”).  The 2022 FRP Filing was made pursuant to the Electric Formula Rate Plan Rider Schedule (“EFRP”) and the Gas Formula Rate Plan Rider Schedule (“GFRP”) approved and adopted by the Council via Council Resolution R-20-344 and approved Agreement in Principle.
       
    • June 30, 2022 – ENO filed its updated Energy Efficiency Cost Recovery Rider (“Rider EECR”) consistent with the form of Rider EECR submitted in ENO’s December 9, 2019 compliance filing pursuant to Council Resolution R-19-457, R-20-67, and R-20-51.
       
    • July 15, 2022 – ENO, the Council Advisors, and Air Products and Chemicals, Inc. (Intervenor) each filed their respective correction reports of Entergy New Orleans, LLC Regarding the April 29, 2022 Electric and Gas Formula Rate Plan Filings (“ENO’s Correction Report”) with attachments.
       
    • July 21, 2022 – ENO filed its Request for Approval of Public Direct Current Fast Charging Station Project to Expand Access to Electric Vehicle Charging Infrastructure and Request to Modify its Electric Rate Schedules.  This filing is also under consideration in Council docket UD-18-01 (“Smart Cities”).
       
    • August 9, 2022 – ENO filed its 2022 Formula Rate Plan (“FRP”) Memorandum on Interim FRP Rate Adjustment regarding the September 2022 Adjustment to ENO’s April 29, 2022 ENO Electric and Gas FRP filing. 
       
    • August 29, 2022 – ENO filed its Final Formula Rate Plan (“FRP”) Rate Adjustments for the 2022 Electric and Gas Evaluation Reports for the Evaluation Period ended December 31, 2021 (Initially filed on April 29, 2022).
       

    2023 Formula Rate Plan

    • April 28, 2023 – ENO filed its 2023 Formula Rate Plan (“FRP”) for Electric and Gas operations for the Evaluation Period ending December 31, 2022 and the Summary of 2023 Electric and Gas Formula Rate Plan Filings and Request for Waiver of Requirements and Other Relief on behalf of Entergy New Orleans, LLC (“2023 FRP Filing”).  The 2023 FRP Filing was made pursuant to the Electric Formula Rate Plan Rider Schedule (“EFRP”) and the Gas Formula Rate Plan Rider Schedule (“GFRP”) approved and adopted by the Council via Council Resolution R-20-344 and approved Agreement in Principle; 
       
    • July 14, 2023 – ENO filed its Correction Report regarding the April 28, 2023 Electric Formula Rate Plan Filing pursuant to Section II.B.3 of Electric Formula Rate Plan Rider Schedule EFRP-6; 
       
    • July 14, 2023 – Council Advisors filed their Council of the City of New Orleans’ Investigation and Review of ENO’s 2023 Electric and Gas Formula Rate Plans Evaluation Filings; 
       
    • August 9, 2023 – ENO filed its Memorandum of Entergy New Orleans, LLC on the 2023 Interim electric and Gas FRP Rate Adjustments. 
       
    • September 7, 2023 – The Council adopted Resolution R-23-423 with an accompanying Agreement-in-Principle (settlement) implementing the August 29, 2023 letter from the UCTTC Chairman to ENO to implement the Advisors’ proposed bill mitigation to avoid significant electric rate increases for customers.
       

    • October 19, 2023 – The Council adopted Resolution R-23-491 extending the Electric and Gas FRP an additional three years (through April 2026).

    Direct Current Fast Charging Station Project (Rate Impact):

    • January 14, 2022 – ENO filed a Request to Modify its Electric Rate Schedules to Expand Access to Electric Vehicle Charging Infrastructure.  This filing is under Council consideration in Council docket UD-18-01 (Smart Cities).
       
    • July 21, 2022 – ENO filed its Request for Approval of Public Direct Current Fast Charging Station Project to Expand Access to Electric Vehicle Charging Infrastructure and Request to Modify its Electric Rate Schedules.  This filing is concurrently under consideration in Council docket UD-18-01 (“Smart Cities”). 
       
    • January 23, 2023 – ENO filed its Motion for Delay of Consideration of the Request for Approval of Public Direct Current Fast Charging Station Project and Request to Modify its Electric Rate Schedules (“DCFC Station Request”) due to (1) a material change in circumstances regarding Walmart Supercenter on Bullard Avenue in New Orleans East withdrawing its interests in hosting ENO’s EV charging equipment at any of their locations in New Orleans and (2) to expedite approval of its January 14, 2022 Request to Modify its Electric Rate Schedules to Expand Access to Electric Vehicle Charging Infrastructure in the City of New Orleans (“January EVCI Request”). This filing is concurrently under consideration in Council docket UD-18-01 (“Smart Cities”); 
       
    • February 16, 2023 – The Council of the City of New Orleans granted ENO’s Motion for Delay of Consideration of the Request for Approval of Public Direct Current Fast Charging Station Project and Request to Modify its Electric Rate Schedules.  The Council found that ENO’s January EVCI Request is in the public interest.  The Council found that ENO’s January EVCI Request is in the public interest per Resolution R-23-75.
       
    • December 19, 2023 – ENO filed a Request for Approval of Public Charging for Electric Vehicles Rate Schedule (“Schedule PCEV”) and to Modify its Electric Rate Schedules.