Tuesday, March 21, 2006

While We Make Plans...

Entergy has a request:
The three Entergy Corp. utility units in Louisiana will seek a combined $1.35 billion in federal funds to pay for damage from hurricanes Katrina and Rita — money the company says is needed to avoid big rate increases for its customers.


Without help, Entergy New Orleans has said rates will have to at least double in the city, stymieing economic recovery.
The federal funds Entergy is asking for will most likely come out of the CDBG funds, which would leave less for housing. If Entergy’s needs are to be met, as well as all other non-housing and infrastructure needs, then that $4.2 billion in community development block grants that’s bouncing around Congress right now is essential for the state to go through with its housing plans.

Here’s how Governor Blanco explained it in early March:
We fought hard for the additional 4.2 billion (dollars) in CDBG funding that allowed us to announce our housing plan. If our combined total of 12.1 billion (dollars) in housing and hazard mitigation that comes from FEMA is realized, I will invest it in four key areas: one -- the first area is 7.5 billion (dollars) to owner-occupied housing; the second is 1.75 billion (dollars) to affordable rental properties; the third is 2.5 billion (dollars) to infrastructure; and the fourth is 350 million (dollars) to economic development.
Entergy’s request represents half of that infrastructure number. And notice the figure needed for the housing plan is more than what we have now at $6.2 billion in CDBG money.

The Mayor signed off on his plan to rebuild New Orleans last night. The “Failed Levee Homeowner Recovery Program” is part of that plan, which must be approved by the state. If the state is relying on the extra $4.2 billion to come through for its plan, we can assume that the Mayor’s plan relies on it, too.

Now that we’ve made all these plans, what happens if the $4.2 billion doesn’t go to Louisiana?


bayoustjohndavid said...

Also, Cleco wants about $160M. No matter what the merits of any individual utility's request, once one utility gets money they'll all demand it. There will end up being storm damaged utilies in Shreveport and all the CDBG money will be gone, if we're not careful.

ashley said...

WTF does ComEd get bailed out and Entergy doesn't. FYYFF.

Mr. Clio said...

I don't think you'll hear Bush threatening a veto if money goes to Texas rather than to Louisiana. Do you?

Rampoldi said...

Whether you like Entergy or not, the monies would help Louisiana; we need it. Any ideas in Baton Rouge on whether Entergy will get the monies?