Entergy New Orleans CEO talks hardening the grid and how much customers may pay - WDSU New Orleans

Entergy New Orleans CEO talks hardening the grid and how much customers may pay

AND THANKS FOR WATCHING THIS EDITION OF THE HOT SEAT. WE HAVE TWO REPRESENTATIVES FROM ENTERGY NEW ORLEANS HERE. FIRST OFF, LET’S INTRODUCE YOU ALL. WE HAVE CEO DEANNA RODRIGUEZ. THANKS FOR BEING HERE. AND WE HAVE STEPHEN BENARD. YOU OBVIOUSLY HAVE A BIG ROLE WITH ENTERGY, NEW ORLEANS AND ENTERGY, LOUISIANA. WHEN IT COMES TO STRENGTHENING AND HARDENING THE GRID, WHICH IS WHAT WE’RE TALKING ABOUT TODAY. FIRST OFF, LET’S TALK ABOUT THIS. HURRICANE SEASON IS OVER. NO MAJOR STORMS IMPACTED. METRO NEW ORLEANS, IF WE CAN START WITH YOU ON THAT, MS. RODRIGUEZ, BEFORE WE GET GET TO HARDENING THE GRID, IS IT JUST A BLESSING THAT WE ESSENTIALLY DODGED A BULLET THIS YEAR WHEN IT COMES TO HURRICANES? ABSOLUTE BLESSING FOR THE COMPANY AND FOR ALL OUR CUSTOMERS. WE DON’T EVER UNDERESTIMATE THE POWER OF A STORM THAT COULD COME THROUGH HERE. WE’RE ALWAYS PREPARED, BUT WE’RE ALWAYS GRATEFUL TO GET TO THE END OF THE SEASON. AND ARE YOU ALL READY FOR NOT JUST ENTERGY NEW ORLEANS, WHICH IS OBVIOUSLY SEPARATE FROM ENTERGY LOUISIANA, BUT WHEN IT COMES TO THE ENTIRE SOUTHEAST LOUISIANA AREA, WERE YOU ALL READY THIS HURRICANE SEASON? NOTHING HAD TO GO INTO PLACE OR BE ACTIVATED, WHICH IS A GOOD THING. BUT WERE YOU ALL READY? TRAVERS WE PREPARE YEAR ROUND FOR HURRICANE SEASON AND WE NEVER STOP PLANNING AND PREPARING. AND ALSO ADDING TO DOING A LOT OF OUR RELIABILITY WORK YEAR ROUND. WE’RE TO MAKE SURE THAT WE HARDEN OUR GRID TO MAKE SURE IF WE DO HAVE ONE AND WHEN IT HAPPENS, WE’RE PREPARED. ALL RIGHT. THAT’S WHAT WE’RE HERE TO TALK ABOUT TODAY. HARDENING THE GRID. IT IS A BIG TOPIC AT TIMES, A CONTROVERSIAL TOPIC. WE ALL SAW THE EXPOSURE DURING HURRICANE IDA WHEN WOODEN POLES GET BENT AND GO DOWN, IT TAKES DAYS, SOMETIMES WEEKS. UNFORTUNATELY, TO GET PEOPLE’S POWER TURNED BACK ON. YOU ALL HAVE A PLAN. IT’S AN EXPENSIVE ONE TO HARDEN THE GRID. THAT’S RIGHT. AND WE WERE ASKED AFTER HURRICANE IDA TO COME IN BY THE CITY COUNCIL TO COME IN WITH A PLAN. WHAT CAN WE DO BETTER? WHAT CAN BE DONE DIFFERENTLY? WE LOOKED AT OUR NEIGHBORS TO THE EAST. WE LOOKED AT WHAT HAPPENED IN FLORIDA. THEY HAVE THE SAME KIND OF HURRICANES THAT GO THROUGH THERE. THEIR RESPONSE IS FASTER THERE BECAUSE THEY HAVE HARDENED THE GRID. WE HIRED EXPERTS, ENGINEERS COME UP WITH THE PLAN. WE SUBMITTED IT ABOUT A YEAR AND A HALF AGO TO THE COUNCIL. THEY’VE BEEN REVIEWING IT. THEIR EXPERTS HAVE BEEN REVIEWING IT. WE’VE ASKED FOR COMMENTS AND IT ESSENTIALLY DOESN’T JUST FIX THINGS WHEN THEY’RE BROKEN, WHICH WE HAVE TO DO TO MAINTAIN. IT GOES IN AND REBUILDS TO A HIGHER STANDARD SO THAT IF A STORM COMES THROUGH, WE’RE READY. AND JUST TO POINT THIS OUT, ENTERGY NEW ORLEANS IS REGULATED BY THE CITY COUNCIL IN NEW ORLEANS FOR PEOPLE WHO MAY NOT BE FAMILIAR WITH THAT, OBVIOUSLY, THERE’S A LOT OF INTERGOVERNMENTAL WORKINGS. THE PUBLIC SERVICE COMMISSION REGULATES ENTERGY, LOUISIANA. THE PLAN, OPERATION GRIDIRON, IS $1 BILLION WITH A B, IT’S A LOT OF MONEY, A LOT OF PEOPLE HAVE THIS QUESTION. AND IT’S PROBABLY FOR BOTH OF YOU. I’LL GIVE YOU THIS GIVE YOU THIS AS A JUMP BALL, IF YOU WILL. A LOT OF PEOPLE WHEN YOU SAY $1 BILLION, PEOPLE WATCHING THIS GO, WELL, WHY DOESN’T ENTERGY PAY FOR IT? THEY’RE A MULTIBILLION DOLLAR CORPORATION. WHY DOES AN ENTERGY PAY FOR THIS? WHY DO RATEPAYERS HAVE TO ESSENTIALLY FOOT SOME OF THE BILL FOR THIS? SURE. AND, YOU KNOW, WE GET ASKED THAT QUESTION A LOT, BUT IT’S PART OF HOW WE ARE STRUCTURED AS A REGULATED UTILITY. SAME KIND OF THING WHERE I WOULD SAY, WHY DOESN’T SEWAGE AND WATER BOARD PAY FOR EVERYTHING THAT THEY DO? WE’RE ESSENTIALLY THE SAME, BUT WE’RE A PRIVATE CORPORATION, SO WE’RE REGULATED BY THE UTILITY. ANOTHER THING THAT I WOULD OFFER IS THAT AT ANYTHING THAT YOU BUY, ANY CUSTOMER THAT BUYS SOMETHING, FOR EXAMPLE, AN IPHONE, YOU’RE PAYING FOR THE COST OF ASSETS BY APPLE. SO WHAT WE’RE DOING IS JUST A LITTLE BIT DIFFERENT. WE’RE ASKING OUR CUSTOMERS TO PAY FOR THE SERVICES WE PROVIDE AND THEN IT IS THEN THEREFORE REGULATED BY THE BY THE UTILITY, BY THE UTILITY COMMITTEE AND BY THE COUNCIL. ONE MORE THING. NO, PLEASE GO AHEAD. TAKE YOUR TIME. NO, WE HAVE A LOT OF TIME TO GET INTO THIS. BUT ONE MORE THING I WOULD ADD IS THAT THIS INVESTMENT WILL ESSENTIALLY BENEFIT CUSTOMERS AND BRING THOSE COSTS DOWN. A STORM LIKE IDA COSTS $200 MILLION. JUST ONE STORM ON THE LOW RANGE OF WHAT WE’VE OFFERED IN THIS PLAN. IT’S. 750 MILLION TO $1 BILLION. SO IF YOU HAVE THREE AND A HALF, IDA’S, YOU’RE ESSENTIALLY COVERING THAT. AND THAT’S THE COST THAT YOU PAY IMMEDIATELY IN RESPONSE TO A STORM LIKE THAT. WE’RE GOING TO GET TO THE COST IN A SECOND. BUT THIS IS A QUESTION FOR YOU, MR. VINEYARD. HARDENING THE GRID, WHAT DOES THAT ENTAIL? BECAUSE A LOT OF THIS STUFF AND LIKE I SAID, WE TRY TO BE A VOICE OF THE PEOPLE HERE AND HAVE QUESTIONS THAT THEY HAVE FOR YOU ALL. A LOT OF PEOPLE SAY, HEY, LOOK, IS IT GOING TO BE GET RID OF THE WOODEN POLES, PUT A STEEL OR A CONCRETE PULL UP THAT MAY NOT GET BLOWN DOWN AS EASILY. IS IT SOMETHING WHEN IT COMES TO THE POWER PLANTS, WHAT DOES HARDENING THE GRID ACTUALLY LOOK LIKE AND MEAN? SO IF YOU LOOK AT OVER THE LAST 50 YEARS, WE HAVE NINE MAJOR HURRICANES HIT THE CONTINENTAL UNITED STATES. AND IN THE LAST FIVE YEARS, THERE WERE SIX. TWO OF THOSE HIT RIGHT HERE IN LOUISIANA. SO WE UNDERSTAND WHAT WE NEED TO DO, SOMETHING DIFFERENT. LEE SO WHAT HARDENING MEANS TO US WHEN WE BUILT OUR SYSTEM OVER 70 YEARS AGO, WE BUILT AT A CERTAIN ENGINEERING STANDARD. WE WEREN’T SEEING THAT KIND OF EXPONENTIAL INCREASE OF STORMS HERE. AND NOW WE HAVE TO BUILD TO THE TYPE OF STORM WE’RE GETTING THAT THE LAST STORM WE HAD, IDA, WAS A MAJOR HURRICANE IN OVER 150 MILE PER HOUR WINDS. WE SAW. SO THAT’S A STANDARD WE HAVE TO CHANGE TO. SO THAT MEANS STRONGER WOOD POLES. YOU CAN DO CLASS ONE POLES. THAT MEANS CONCRETE. THAT MEANS STEEL. ALSO CHANGE THE ENGINEERING AND DESIGN SO THAT WHEN OUR POLES HAVE THE WIND EVENTS OR DEBRIS AND THINGS LIKE THAT, IT DOESN’T HAVE THE FORCES TO ACTUALLY BREAK. AND WHICH TAKES LONGER TO REPLACE POLES AND THE BIGGER INFRASTRUCTURE FOR NOW. NOW YOU ACTUALLY WOULD JUST BE PUTTING A WIRE, YOU KNOW, INSTEAD OF SO INSTEAD OF HAVING LIKE LIKE IDA, WHICH TOOK US 7 TO 9 DAYS TO RESTORE, YOU CAN TECHNICALLY RESTORE IN THREE DAYS, WHICH IS MUSIC TO PEOPLE’S EARS PROBABLY LISTENING TO THIS RIGHT NOW. BIG BENEFIT PEOPLE WANT THEIR POWER BACK ON SOONER RATHER THAN LATER. IS THIS AN OPTION? LOOK, THE FRENCH QUARTER OF NEW ORLEANS IS THE MOST HISTORIC NEIGHBORHOOD IN THE CITY. LAKE VISTA ALSO IS A NEIGHBORHOOD THAT’S RELATIVELY NEW MID-CENTURY. A LOT OF THE POWER LINES ARE BURIED UNDERGROUND IN THOSE NEIGHBORHOODS. WHY CAN’T ENTERGY NEW ORLEANS BURY MORE POWER LINES IN THE CITY OF NEW ORLEANS? THIS PLAN ACTUALLY CONTEMPLATE SOME UNDERGROUNDING WHERE IT IS POSSIBLE. SO IT DEPENDS ON THE SOIL AND IT DEPENDS ON THE TECHNOLOGY. AND IT ALSO DEPENDS ON THE COST. AGAIN, IT IT USUALLY COSTS TEN TIMES MORE TO GO UNDERGROUND THAN IT DOES TO GO OVERHEAD. SO SO ALL OF IT IS GOING TO BE THE BENEFIT TO THE CUSTOMER AND THE COST OF THE CUSTOMER THAT’S TAKEN INTO ACCOUNT. GO AHEAD. AND OUR PEERS TO THE EAST, THEY GET TONS AND TONS OF HURRICANES AND THEY HAD A SIMILAR STRATEGY. YOU HAVE PORTIONS WHERE YOU’RE GOING TO DO OVERHEAD WORK. YOU’RE GOING TO DO SOME UNDERGROUNDING. BUT IF YOU CAN GET THE TRUNK WHERE IT’S RESILIENT, IT DOESN’T MATTER IF IT’S OVERHEAD. OUR TRANSMISSION STRUCTURES ARE OVERHEAD. WE HAVE A TRANSMISSION STRUCTURE IN THE CITY OF IN NEW ORLEANS, WHEREIN IT CAN WITHSTAND UP TO 170 MILE PER HOUR WINDS. SO IT’S POSSIBLE TO BE OVERHEAD AND BE RESILIENT AND SAFE. DOES THIS WORK ALSO, IS THIS PLAN TO DEAL WITH THOSE TRANSMISSION TOWERS? BECAUSE I KNOW A LOT OF PEOPLE IN NEW ORLEANS FEEL LIKE THE NEIGHBORHOOD I LIVE IN, WE DIDN’T LOSE POWER AT ALL DURING IDA, WHICH WE WERE JUST FORTUNATE UNTIL THAT TRANSMISSION TOWER ON THE WEST BANK FELL. DOES THIS PLAN ESSENTIALLY TRY TO HARDEN TRANSMISSION TOWERS THAT ARE USED BY NEW ORLEANS AND JEFFERSON PARISH AND ARE MORE REGIONAL ON A REGIONAL IS A BETTER WORD. BUT I KNOW THE ONE WE’RE TALKING ABOUT IS ON THE WEST BANK OF JEFFERSON PARISH WHEN IT FELL FELL IT KNOCKED A LOT OF POWER DOWN. BUT IF THAT ONE HADN’T GONE DOWN, A LOT OF PEOPLE WOULDN’T HAVE LOST POWER. AND THAT’S A PART OF OUR PLAN. WE HAVE A HUGE AMOUNT OF THE MONEY GOING TOWARDS THE DISTRIBUTION SYSTEM. IT’S GOING TO DO ALL OF THE SMALLER POLES THAT FEED THE HOMES, BUT ALSO WE HAVE A LARGE PORTION OF THE MONEY THAT’S GOING TO GO TOWARDS OUR TRANSMISSION INFRASTRUCTURE. SO WE HAVE SEVERAL PROJECTS GOING TO ADDRESS THAT. WHAT YOU EXACTLY WHAT YOU’RE TALKING ABOUT, TRAVIS, I KNOW YOU ALL TALKED ABOUT THE COST ABOUT $1,200 PER STORM, PER FAMILY TO EVACUATE, TO STAY IN A HOTEL OR STAY WITH RELATIVES OR DO WHAT THEY HAVE TO THE COST. AM I RIGHT? IN SAYING THIS? IT’S ABOUT $0.11 A MONTH, BUT THEN IT WILL GO UP THROUGH 2028 FOR CUSTOMERS. WELL, THE BILL THE WAY WE’VE WE’VE MODELED THIS IS SO IF WE GET THE ENTIRETY OF IT AND I’M GOING TALKING TO DIFFERENT CUSTOMERS ALL OVER THE CITY AND WE’VE TALKED TO NEIGHBORHOOD ASSOCIATIONS, IF WE DO THAT, IT TURNS INTO THE IF THE BILLION DOLLAR PLAN IS APPROVED, ADDS ABOUT $0.20 PER MONTH PER CUSTOMER FOR IN THE FIRST YEAR, AND THEN IT GOES UP TO ALMOST $12 PER CUSTOMER. HOWEVER, AFTER YOU DO THE $750 MILLION PLAN, AGAIN IT’S REDUCED BY THAT. THEN WE’RE ALSO IN CONVERSATIONS WITH THE WITH THE COUNCIL TO LOOK AT PROBABLY MAKING THIS, INCLUDING THE $55 MILLION GRANT THAT WE GOT FROM THAT TAKES IT OFF ANOTHER PIECE. IF THERE’S THERE’S SEVERAL OPPORTUNITIES FOR US TO REALLY MAKE THIS COST FREE TO CUSTOMERS. SO WORKING WITH THE COUNCIL, I THINK THAT THERE’S AN OPPORTUNITY FOR US TO SUPPLEMENT AND MITIGATE ALL THESE COSTS SO THAT IT’S IT’S MUCH SMALLER, BUT WE WANTED TO START OFF WITH THIS IS WHAT IT WILL TAKE. GO AHEAD, GO AHEAD. YOU ALSO HAVE STORM RIDERS THAT ARE ROLLING OFF THE BILL THAT WILL MAKE IT MORE AFFORDABLE AS WELL. SO IT’S KIND OF OFFSETTING SOME OF THOSE INCREASE IN IN INVESTMENT AND LONG TERM, IF WE CAN SAVE SOME OF SOME OF THE TIME AND RESTORATION, WE ACTUALLY GET THE ECONOMY BACK TO WHERE IT NEEDS TO BE A LOT QUICKER. LET ME ASK YOU ALL THIS, BECAUSE IN HURRICANE KATRINA, WHICH SO MANY PEOPLE REMEMBER, THE FEDERAL GOVERNMENT SPENT A LOT OF MONEY. WE HAVE MAYBE THE BEST LEVEE SYSTEM IN AMERICA, ARGUABLY RIGHT NOW, THE RING LEVEE THAT PROTECTS THE GREATER NEW ORLEANS AREA. IT WAS SEVERAL HUNDRED BILLION TO BUILD IN HURRICANE IDA. THERE WERE A LOT OF PEOPLE IN THE FEDERAL GOVERNMENT WHO SAID WE WANT TO HELP. WE WANT TO HELP LOUISIANA RIGHT NOW. MIKE JOHNSON IS THE SPEAKER OF THE HOUSE. THE MAJORITY LEADER IS STEVE SCALISE. DO YOU ALL WORK WITH THEM TO GET MORE MONEY AND MORE RESOURCES FROM THE FEDERAL GOVERNMENT? I HATE TO SAY TO BAIL OUT LOUISIANA BECAUSE LOUISIANA DOESN’T NEED A BAILOUT. NEITHER DOES NEW ORLEANS. THAT’S RIGHT. BUT IS THERE ANY WAY TO WORK WITH THE CONGRESSIONAL DELEGATION, WHICH HAS A LOT OF MUSCLE AND STROKE RIGHT NOW IN DC TO OFFSET THE COST FOR RATEPAYERS? WELL, THE GRANT THAT WE JUST RECEIVED IS AN EXAMPLE OF THE OF THE FEDERAL GOVERNMENT HELPING US. THE OTHER PITCH THAT WE MAKE IS LOUISIANA ITSELF IS SO IMPORTANT NOT JUST TO THE FOLKS THAT LIVE HERE, BUT TO THE ENTIRE COUNTRY. THIS IS THE ENERGY HUB AND THE CENTER OF OF NOT JUST THE, YOU KNOW, THE COUNTRY, BUT ACTUALLY THE ENTIRE GLOBE. SO EVERYTHING COMES THROUGH LOUISIANA GAS, YOU KNOW, PETROCHEMICALS, ALL OF THESE THINGS. SO THERE IS A IS A SELF INTEREST BY THE ENTIRE COMPANY, INCLUDING CONGRESS, MEN AND WOMEN. SO WE ARE MAKING THAT PITCH AND WE’RE ASKING FOR EVERY DOLLAR OF SUPPORT FROM THE FEDERAL GOVERNMENT THAT WE CAN RECEIVE. SO YOU NEED THE CITY COUNCIL, OBVIOUSLY, TO APPROVE THIS, TO MOVE FORWARD. THINGS GOT VERY CONTENTIOUS, AS YOU ALL KNOW, AFTER HURRICANE IDA, BECAUSE THE COUNCIL IS VERY COGNIZANT OF THE FACT THAT WE’RE IN A DIFFICULT FINANCIAL STATE RIGHT NOW WHEN IT COMES TO INSURANCE AND INTEREST RATES. AND JUST THE COST OF LIVING RIGHT NOW. IF THE CITY COUNCIL DOESN’T APPROVE THIS, WHAT HAPPENS THEN WITH ENTERGY NEW ORLEANS WHEN IT COMES TO HARDENING THE GRID? WELL, IT WON’T BE HARDENED AND WE’LL CONTINUE TO KIND OF PICK UP THE PIECES AFTER THE STORM AS IT CONTINUES. NOW WE INVEST EVERY DAY. SO WE’VE PUT IN OVER $30 MILLION A YEAR, AND WE’RE RELIABILITY ALONE. AND I KNOW THAT AN OUTAGE AT MY HOME OR ANYONE’S HOME IS NOT GOOD EVER. BUT I ALSO KNOW THAT THESE WE’VE ALREADY REDUCED AND BECOME MORE RELIABLE OVER THE YEARS WITH THE COUNCIL PUSHING US TO BECOME MORE RELIABLE AND INVEST MORE. BUT IF WE DON’T DO IT TODAY, THEY AND IN FACT, I WAS ASKED THIS QUESTION RECENTLY, WELL, WHY WASN’T THIS DONE TEN YEARS AGO? I CAN’T ANSWER THAT. I KNOW WE’VE IMPROVED OUR RELIABILITY. THE REAL QUESTION FOR US AT THE AT THE ENTERGY AND AND AT THE COUNCIL AND EVERY CUSTOMER OUT THERE IS IF WE DON’T DO IT TODAY WHEN A STORM COMES THROUGH, I THINK WE’RE ALL GOING TO BE LOOKING AT TODAY AND GOING, WISH WE WISH WE WOULD HAVE STARTED SOONER. RIGHT. AND LIKE THE NSA, WE HAVEN’T STOPPED YEAR OVER YEAR, YEAR. WE CONTINUE TO INVEST 30 WITH MILLIONS AND MILLIONS, 30 MILLION OF DOLLARS EVERY YEAR ON RELIABILITY, WHICH EVERY TIME WE TOUCH SOMETHING, WE BRING IT UP TO OUR NEW STANDARD. WITH THAT SAID, IT’S BEEN 20 TO 20 5 TO 30% BETTER RELIABILITY PERFORMANCE, BUT THAT’S NOT GOING TO GET YOU WHERE YOU WANT TO BE AS FAR AS RESILIENCY. SO THAT’S WHY WE’RE KIND OF PUSHING ON THIS SO THAT, LIKE YOU SAID, WE’RE NOT REGRETFUL AFTER THE NEXT STORM WHEN WE CAN’T RESTORE QUICKER FOR OUR FOLKS THAT CAN’T AFFORD TO EVACUATE. ALL RIGHT. LET ME ASK YOU THIS, BECAUSE WE JUST SAID THIS. WE ALL CAN SEE THE HURRICANE SEASON IS OVER WITH RIGHT NOW. IS THERE A TIME FRAME THAT YOU NEED THE COUNCIL OR WOULD LIKE THE COUNCIL TO APPROVE THIS? OBVIOUSLY, IT’S NOT AN ELECTION YEAR. THE SEVEN MEMBER BODY IS THERE THROUGH TWO MORE YEARS. IS THIS SOMETHING THAT YOU ALL ARE ASKING THEM TO PUSH THROUGH SOONER RATHER THAN LATER? WELL, YOU KNOW, YOU GET READY FOR EVERY STORM SEASON. AND SO I WOULD SAY THAT IF WE DON’T START AS SOON AS POSSIBLE, WE’RE GOING TO BE LESS PREPARED FOR THE NEXT STORM SEASON, THE SEASON AFTER THAT. AND THE SOONER WE CAN GET STARTED, THE SOONER WE CAN HARDEN THE GRID. I APPRECIATE YOUR TIME. ANYTHING ELSE TO WRAP UP? MR. BANYARD, REALLY QUICKLY? WE TRULY UNDERSTAND HOW IMPORTANT THIS IS TO LOUISIANA ECONOMY AND OUR NEIGHBORS IN OUR COMMUNITY. WE’RE PART OF THIS COMMUNITY, SO WE WANT TO MAKE SURE THAT WE PUT OUR BEST FOOT FORWARD AND RESILIENCY. IS IT ALL RIGHT, STEVEN VINEYARD, DEANNA RODRIGUEZ, WE APPRECIATE YOUR TIME VERY MUCH BECAUSE THIS IS SUCH AN IMPORTANT ISSUE FOR EVERYBODY WATCHING RIGHT NOW WHEN IT COMES TO KEEPING THE POWER ON AFTER STORMS. THANK YOU SO MUCH. THAT’S ALL THE TIME THAT WE HAVE FOR THE HOT SEAT. YOU CAN SEE THIS ENTIRE SEGMENT STARTING MONDAY MORNING ON OUR WEBSITE

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Entergy New Orleans CEO talks hardening the grid and how much customers may pay

Entergy New Orleans CEO Deanna Rodriguez appeared on the WDSU Hot Seat to talk about the plan for hardening the grid and the cost to customer.It is a $1 billion dollar project.
NEW ORLEANS —

Entergy New Orleans CEO Deanna Rodriguez appeared on the WDSU Hot Seat to talk about the plan for hardening the grid and the cost to customer.

It is a $1 billion dollar project.

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