Settled Dockets

UD-22-01: In Re: Application Of Entergy New Orleans, LLC And The Louisiana Utilities Restoration Corporation For Authority To Fund And Finance Storm Recovery Reserves And Related Relief

Council Docket UD-22-01, established via Resolution R-22-142, is a proceeding opening a docket and establishing a procedural schedule authorizing Entergy New Orleans, LLC (“ENO”) to replenish the storm reserve at a principal amount of $150 million.  By way of background, on October 27, 2006, in response to the devastation resulting from Hurricane Katrina, the Council adopted Resolution R-06-459 directing ENO to establish a storm reserve.  As a result, and as directed by Resolution R-06-459, ENO implemented Electric and Gas Storm Reserve Riders.  Subsequently, in 2020 and 2021, while in the midst of the COVID-19 pandemic, the City of New Orleans was impacted by Hurricanes Laura, Delta, Zeta, and Ida.  Due to the economic hardships brought on by the pandemic, the Council deemed it appropriate to allow ENO to recover costs through the storm reserve rather than through customer bill increases resulting in the depletion of the storm reserve.  On February 4, 2022, ENO and the Louisiana Utilities Restoration Corporation (“LURC”) filed an application seeking authorization to replenish the storm reserve at a principal amount of $150 million (“ENO Application”).  On April 7, 2022 the Council adopted Resolution R-22-142 to allow review of ENO’s Application pursuant to a procedural schedule. 

Pertinent docket deadline dates are/were as follows:

• April 7, 2022 – Discovery period commences on a rolling basis and due within 15 days of receipt.  Objections to data requests shall be filed within 5 days of receipt.  The discovery deadline shall be 15 days prior to the deadline for the submission of the Advisors’ Report to the Council;
   
• April 29, 2022 – Deadline for all stakeholders desiring to intervene to file a motion to intervene with the Clerk of Council, with a copy submitted to Bobbie Mason (bfmason1@nola.gov).  Objections to motions to intervene shall be filed within 5 days of such requests. Timely-filed motions to intervene not objected to within that time period shall be deemed GRANTED.
   
• June 3, 2022 – The Intervenors are directed to file comments, if they choose to do so;  
   
• August 12, 2022 – The Advisors are directed to report their findings in the form of a written report;   
   
• August 30, 2022 – The Hearing Officer shall certify the record to the Council for consideration.  However, in the event the Council finds an evidentiary hearing or any further administrative proceedings are necessary, the Council may establish additional dates within the procedural schedule in this docket.
   
• October 6, 2022 – Council Adopted Resolution R-22-437 (As Corrected) approving the application of ENO for authority to fund and finance storm recovery reserves and related relief.  
   
• ​December 13, 2022 – ENO and LURC filed a joint Issuance of Advice Letter for Storm Recovery Bonds establishing (1) the total amount of storm costs to be financed; (2) confirmation that customers will experience savings or that the rate impacts to customers will be avoided or mitigated relative to traditional methods of financing; (3) confirmation that the structuring, terms, and pricing of the Storm Recovery Bonds are consistent with the terms of the Financing Order; (4) confirmation that the pricing of Storm Recovery Bonds is consistent with market conditions at the time of pricing; (5) the actual terms and structure of the Storm Recovery Bonds issued; and (6) the initial Storm Recovery Charges.
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• December 14, 2022 – Council Advisors filed a Council Designee’s Concurrence pursuant to the October 6, 2022 Financing Order of the City Council per Resolution R-22-437 (As Corrected) concurring review and receipt of the Applicant’s Storm Cost Certification, acknowledgement of proper form, and concurrence of the terms of the Storm Recovery Bonds.
   
• December 22, 2022 – ENO filed its Securitized Storm Recovery Rider II (“Rider SSCRII”), supporting calculations, and summary of bill effects of the rider on typical bills.  The SSCRII Rate is 5.5322% and commenced in the first billing cycle of January 2023.
   

• March 15, 2023 – LURC filed its Final Accounting of Up-front Financing Costs regarding the LURC’s issuance of storm recovery bonds.