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Alliance Statement on the Tennessee
Toxic Coal Ash Spill
The recent coal ash spill in Tennessee, which flooded 300 acres with arsenic, lead and other toxins, poisoned the Emory River and destroyed 42 homes, should serve as a warning of the manifold dangers posed by coal-fired power plants.
Despite the slick, well-funded PR of the coal lobby, there is simply no such thing as "clean coal". Of all our means of generating electricity, burning coal is the greatest single contributor to greenhouse gas emissions and global warming. None of the schemes of the coal lobby to deal with these emissions have yet worked, even as the industry is pushing for massive expansion. With the added dangers posed by toxic by-products, coal is simply too dangerous an option for our future.
This tragic accident is yet another reason why we cannot allow Entergy Corporation to convert the Little Gypsy plant to burn coal and petroleum coke, an oil industry by-product.
Clean solutions exist for our energy needs which utilize energy efficiency and renewable resources, such as the awesome offshore wind potential of Southern Louisiana. Furthermore, taking advantage of energy efficiency and our renewable potential now will generate significant job creation, tackling two of our greatest needs at once.
The future for Louisiana must be energy efficiency and clean, renewable energy, not dirty coal.
NEWS FLASH! January 2, 2009
The Dynegy Corporation has announced the termination of their coal-plant development partnership...
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BEFORE THE
LOUISIANA PUBLIC SERVICE COMMISSION
Proposed Withdrawal of
Entergy Arkansas and Entergy Mississippi
From the Entergy System Agreement
Comments by The Alliance for Affordable Energy
November 12, 2008
The Alliance for Affordable Energy (“Alliance”) thanks the Public Service Commission (“Commission”) for the opportunity to speak today regarding the proposed withdrawal of Entergy Arkansas (“EAI”) and Entergy Mississippi (“EMI”) from the Entergy System Agreement.
We acknowledge and are grateful to the Commission and their consultants for their foresight in the past of bringing to the Federal Energy Regulatory Commission (“FERC”) the possible inequities within the system and successfully convincing FERC to rule in favor of fairness to ratepayers. The FERC ruling is now the guide for all subsidiaries in the System and, since it is the law, we all assumed compliance with it would be a given. However, EAI, has made a blatant attempt to avoid abiding by the FERC order requiring them to pay back enormous windfall profits, some $250 million this year alone, into the system where they rightfully belong. The Alliance urges the Commission to ensure that Entergy Louisiana (“ELL”) and Entergy Gulf States (“EGS”) act to protect the interest of their ratepayers and not the shareholders of their holding company. The Alliance is urging you to scrutinize and publicly report the steps ELL and EGS are taking to resolve this issue in a manner most just and equitable. Do not simply leave it until it has to go before FERC again, and then only deal with it in Washington.
ENTERGY IS DISCRIMINATING AGAINST LOUISIANA RATEPAYERS
Entergy Corporation (“Entergy”), one of only two Fortune 500 companies in Louisiana, has repeatedly used its power as a financial giant to subvert the interests of Louisiana ratepayers. The Alliance is once again pointing out the need for planning ahead. Entergy Louisiana, for instance, is asking the LPSC to approve project investment agreements which assume the System Agreement is in place, but the costs of those projects will be affected by the breaking up of the system. Yet Entergy Corporation, and all of its subsidiaries, have resisted persistently the adoption of serious energy efficiency programs and renewable energy policies which would serve to stabilize ratepayers’ energy bills. Now is the time for the Commission to demand that they do so.
Under the proposed withdrawal, EAI will remove from the system a number of low-cost generating plants, the construction of which was funded in part by Louisiana ratepayers. This represents an outrageous windfall for EAI, whose ratepayers will enjoy the luxury of cheap energy, provided in part by Louisiana ratepayers, even while our State is still attempting to mend an economy struggling in the aftermath of hurricanes Katrina and Rita, and more recently, Gustav and Ike.
II. ELL and EGS HAVE A DUTY TO PROTECT THE INTERESTS OF THEIR RATEPAYERS
The Alliance was extremely gratified to be present when New Orleans Councilmember Shelley Midura was invited to comment on this issue as well. We considered it an historic moment. In our 23 years of existence that was the first time we saw a city council member address the LPSC. We hope this portends a future of these two regulatory bodies working together on the issues that support the best interest of Louisiana ratepayers.
Whether out of a desire to please or in a collusive effort to gain profit for Entergy Corporation, Entergy New Orleans (“ENO”) has not taken the strong stand necessary to protect the interests of its ratepayers, as is its duty under the law. The New Orleans City Council (“Council”) had filed repeated requests for information regarding the proactive steps that ENO is taking to bring about a just resolution, and ENO had evaded consistently the Council’s requests. It was, however, this insistence of the City Council that has dramatically raised the issue for the press and the public, alerting them to the potential harm to customers through higher rates and fuel adjustment costs. As long as the Commission does not insist on reports from ELL and EGS on this issue, the steps that ELL and EGS are taking remain a mystery, but the harsh consequences of EAI’s withdrawal for Louisiana ratepayers are well-known.
Given the grave threat posed by the proposed withdrawal of EAI and EMI from the System Agreement, the Commission should require reports investigate the measures ELL and EGS are taking to ensure a just resolution for their ratepayers. The Council has already opened a docket on the issue (Utility Docket No.: UD-08-03), and the combined efforts of the Commission and the Council will place sufficient scrutiny on ELL, EGS and Entergy New Orleans to increase the likelihood of an equitable resolution of this issue.
III. THE COMMISSION SHOULD USE ITS IRP DOCKET AND READDRESS ITS DOCKET ON SETTING A RENEWABLE PORTFOLIO STANDARD TO ENSURE THAT ELL AND EGS ARE DOING ALL IN THEIR POWER TO PROTECT LOUISIANA RATEPAYERS
The Alliance recommends that the Commission and its staff use its open docket for rulemaking in developing an IRP (Docket # 30021) as the guide for instituting real energy efficiency programs also known as Demand Side Management. Energy efficiency is faster, cheaper and offers more stability against rising fuel costs than just building new power plants. In fact, we are submitting, with the Sierra Club, our joint comments in that docket today and are sorry to have to point out that there is no real Demand Side Management (DSM) design involved as part of the process.
The Commission should establish DSM as a top priority, not only because it is in the best interest of ratepayers and the environment, but also because it is the law. According to Section 532 of the Energy Independence Security Act of 2007, PURPA is amended to require Integrated Resource Planning that includes DSM and, in fairness to the utilities, gives the policy option of (B-i) removing the throughput incentive and other regulatory and management disincentives to energy efficiency; as well as (B-ii) providing utility incentives for the successful management of energy efficiency programs. We don’t see any inclination toward policymaking of this sort in the staff and consultant’s proposed rules.
Additionally, we recommend again, that you revisit the issue of a Renewable Portfolio Standard – establishing that a certain percentage of the utilities’ electricity comes from renewable resources. Combined, these two efforts of real energy efficiency and a renewable portfolio standard, will not only serve to establish a market for technologies that will help manage the volatility in people’s utility bills , they will also help reduce the 1% of the world’s carbon dioxide that Louisiana produces each year and best of all they will move Louisiana toward the security of energy independence.
IV. CONCLUSION
Again, the Alliance thanks the Commission for the opportunity to voice these concerns. We trust you will take appropriate action to protect the interests of Louisiana ratepayers and to hold Entergy and EAI accountable under the System Agreement and corresponding FERC order. And we implore you to make it public.
Alliance Board President and Regulatory Affairs Director Karen Wimpelberg and Legal Counsel Jesse George before the LPSC.
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City Council Utility Meeting:
Energy Smart seed funding source approved, councilmembers push Entergy for answers on the System Agreement
Energy Smart
On October 30, the New Orleans City Council Utility Committee approved a funding source for seed money to start the Energy Smart program, a citywide initiative to provide substantial energy efficiency improvements to 2,800 residences and businesses per year. As participants in the design of Energy Smart we at the Alliance for Affordable Energy are thrilled to see this program moving forward. The funding for the program will now go to the full council for approval on November 6.
At the urging of the Alliance, $6.9 million dollars from a Federal Energy Regulatory Commission overcharge ruling was set aside to start such a program in 2000. Design of the program started in 2003, however the 2005 City Council allowed Entergy to use that money to cover their loss of income from population loss caused by post-Katrina flooding.
For more information on Energy Smart, see http://deltasierraclub.blogspot.com/2008/06/new-orleans-city-council-energy-smart.html.
Public Disconnected from the System Agreement
Also at the October 30 meeting, under the leadership of Committee Chair Shelley Midura, the committee continued to ask tough questions of Entergy New Orleans about how they plan to protect New Orleans ratepayers from additional utility costs that will result when Entergy-Arkansas pulls out of Entergy’s System Agreement. City Council Utility Advisor Clint Vince estimated these costs could total “hundreds of millions of dollars of potential harm to the ratepayers of New Orleans.”
Entergy New Orleans spokespersons repeatedly reminded the council that Entergy-Arkansas has the right to leave the System Agreement with eight years notice. However the company never addressed how Entergy-Arkansas would compensate ratepayers in New Orleans and the rest of the state for the money that all members of the system agreement, including New Orleans, put into building power plants in Arkansas.
Many residents of New Orleans are already having a hard time covering high utility bills, which in some cases are leading to a loss of service. Don Everard of Hope House, a faith-based community assistance organization in the Irish Channel, told the committee that “utility and energy disconnect figures are flying all over the city these days... I don’t know how many houses are without energy right now, only Entergy knows.” Mr. Everard also contrasted Entergy’s financial success with the real economic woes that many in the city are experiencing. “Entergy seems to be making a nice profit these days. I’m happy for them, but we’re not,” explained Everard
Instead of responding to these and other concerns, Entergy-New Orleans representatives not only continued to stall and evade questions, but also stated that they are developing a new System Agreement, gutted of any provisions to equalize rates across the system.
Alliance for Affordable Energy Climate and Clean Energy Director John Atkeison told the Council that "Entergy-New Orleans continues to act as a member of the Entergy family and not the New Orleans family."
For background information on the System Agreement see the comments made by Alliance Board President Karen Wimpelberg on September 25 to the Utility Committee scroll down this page.
Also, on November 5 the Times-Picayune published a letter to the editor by Alliance For Affordable Energy Legal Advisor Jesse George responding to an October 31 Times-Picayune article.
"Entergy New Orleans continues to act as a member of the Entergy family and not the New Orleans family," said John Atkeison, Alliance for Affordable Energy Climate and Clean Energy Director.
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Final Q&A on the LPSC candidates.
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BEFORE THE
COUNCIL OF THE CITY OF NEW ORLEANS
UTILITY COMMITTEE
IN RE: ENTERGY SYSTEM AGREEMENT
UTILITY DOCKET NO.: UD-08-03
COMMENTS BY THE ALLIANCE FOR AFFORDABLE ENERGY
SEPTEMBER 25, 2008
The Alliance for Affordable Energy (“Alliance”) hereby submits comments in response to the System Agreement issues affecting Entergy New Orleans’ (“ENO”) ratepayers. At their core, these issues boil down to Entergy Arkansas’ (“EAI”) withdrawal from the System Agreement in order to avoid abiding by the FERC order requiring them to pay back enormous windfall profits into the system where they rightfully belong. We know this because the Council has chosen to make this information available to the public and to us as intervenors in the docket.
I. ENTERGY CORPORATION USES ITS CORPORATE POWER TO UNDERMINE THE INTERESTS OF NEW ORLEANS RATEPAYERS
Entergy Corporation (“Entergy”), the only Fortune 500 company in Louisiana, has repeatedly used its power as a financial giant to subvert the interests of New Orleans ratepayers. The current problems regarding the System Agreement can best be analogized with an anecdote from ancient history. As the Persian armies marched toward Greece in the Greco-Persian Wars of the 5th century B.C., the Persian army would send runners ahead of their ranks to negotiate safe passage for the Persian forces. These runners were instructed to return to camp with a vessel full of earth from the city, a symbol that the people there did not wish to fight the Persians and would allow them to traverse their territory in peace. None would refuse the Persians passage for fear of the massive army camped just beyond their cities’ gates. None, that is, until the runners reached the city-states of Greece, where the Greeks sent the runners back to camp empty-handed. The Greeks simply refused to be intimidated by the Persians’ scare tactics.
The Alliance applauds the Utility Committee (“Committee”) for its dogged efforts to resolve these issues in a manner most equitable and just for ENO ratepayers. Just as the Greeks refused to bend to the Persians’ threats, so too must the Committee refuse to accept passively the discrimination Entergy has displayed toward its subsidiary, ENO.
II. ENTERGY IS DISCRIMINATING AGAINST NEW ORLEANS RATEPAYERS
It is critical to remember that Entergy has been guilty of discriminating against New Orleans ratepayers in the recent past. Following the destruction of Hurricane Katrina, Entergy refused to help bail out its failing subsidiary, ENO, claiming that ENO was an independent entity. Additionally, Entergy has resisted persistently the adoption of energy efficiency and renewable energy policies for New Orleans and the rest of Louisiana, which policies serve to reduce ratepayers’ energy bills.
Entergy’s actions are akin to a dysfunctional family in which Entergy is the parent, EAI is the favorite son, and ENO is the despised stepchild. The favored child is rewarded while the stepchild scrubs the floors. Entergy is playing favorites by allowing EAI to withdraw from the System Agreement in an obvious attempt to avoid paying into the system what it rightfully owes – already $250 million this year alone. If Entergy allows EAI to withdraw, EAI will remove from the system a number of low-cost generating plants, the construction of which was funded in part by New Orleans ratepayers. This represents an outrageous windfall for EAI, whose ratepayers will enjoy the luxury of cheap energy, provided in part by New Orleans ratepayers, even while our city is still attempting to mend an economy struggling in the aftermath of Katrina, the levee failures, and Rita. Now we hear ENO’s claim that it will need an additional $X million to repair damage from Hurricane Gustav.
III. ENO IS NOT PROTECTING THE INTERESTS OF ITS RATEPAYERS
Whether out of a desire to please or in a collusive effort to gain profit for Entergy Corporation, ENO is not taking the strong stand necessary to protect the interests of its ratepayers, as is its duty under the law. Importantly, EAI and ENO are wholly-owned subsidiaries of Entergy, yet ENO continues to talk out of both sides of the corporate mouth. On the one hand, Entergy and ENO claim that EAI, as an independent entity, has the right to withdraw from the System Agreement anytime it chooses, so long as it gives proper notice. If each company is truly independent, however, then ENO should be expressing outrage over EAI’s actions and demanding restitution for its ratepayers. Instead, ENO has sought to facilitate the withdrawal.
IV. PIERCING THE CORPORATE VEIL SHOULD BE CONSIDERED AS A MEANS OF RESOLVING THESE ISSUES
It is clear that ENO is not doing all it can to protect its ratepayers and its inaction is at the behest of Entergy. If this is the case, then each company is not a truly independent entity and the actions of Entergy, EAI, and ENO can best be described as collusion. Therefore, the Committee should consider piercing the corporate veil of Entergy to recover what is owed to New Orleans ratepayers. Piercing the corporate veil is appropriate when corporations commingle assets and conspire to defraud the public. EAI should be required to pay back the $250 million windfall, as well as life-of-unit payments, that it rightfully owes to New Orleans ratepayers, and the Committee should take whatever steps necessary, including piercing the corporate veil, in order to achieve that end.
V. CONCLUSION
The Alliance thanks the Committee for its efforts to protect New Orleans ratepayers. We hope these comments will serve to bring about a fair and just resolution to this issue. We also strongly encourage you to be just as proactive in planning for alternative solutions should no satisfactory resolution be achieved.
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New Orleans BuildSmart Learning Center
to Open October 30, 5:30-9 PM
On October 30, from 5:30-9 PM, you are invited to the Alliance for Affordable Energy's unveiling of the New Orleans BuildSmart learning center. The center is a multi-faceted facility that showcases techniques for energy efficiency, residential solar power and environmentally friendly construction for both contractors and homeowners.
The BuildSmart learning center is located adjacent to our offices in the Art Egg Studios, 1001 S. Broad Street in New Orleans. Map and directions here.
BuildSmart features a life-sized model New Orleans home with cut-aways that show how to make home improvements that will save you money every month in your energy bill, as well as how to utilize green building techniques in the construction or repair of a home. The center also has a demonstration area for building workshops and a reference library with practical how-to-guides, books on green building techniques, contact information for local businesses and general construction texts.
The opening of the center will include an announcement of New Orleans as a recipient of the U.S. Department of Energy's (DOE) Solar Cities Award. The award will be announced byTom Kimbis, the Director of Market Transformation for the DOE Solar Energy Technologies Program, Dr. Edward Blakely, Executive Director of Recovery Management for the City of New Orleans and Forest Bradley-Wright, the Sustainable Rebuild Director for the Alliance for Affordable Energy.
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Louisiana Public Service Commission
District 1 Election Update
On October 4, voters will have the opportunity to chose a new Louisiana State Public Service Commission (LSPC) member for District 1, which includes the north shore of Lake Ponchartrain to the Mississippi border, St. Bernard and Plaquemines parishes, most of Jefferson Parish, and parts of the Lakeview and Uptown neighborhoods in New Orleans.
The LPSC is a state regulatory agency “dedicated to serving the public interest by assuring safe, reliable, and reasonably priced services for the public utilities and motor carriers” (from the LPSC website ). In its role as a regulator the LPSC plays an important role in setting policy that determines the energy future of our state, and is responsible to the citizens of the state.
In order to better inform our members and the public about the positions of the candidates, we at the Alliance for Affordable Energy have both sent out a questionnaire to all four candidates and have made an independent assessment of candidates’ stands on important issues based on their answers and public records.
While conventional wisdom holds that this election is a race between former Commissioner Schwegmann and Mr. Skrmetta, we urge voters to look carefully at the positions of all candidates.
Our brief analysis of the LPSC candidate positions
Responses by all four candidates to the questionnaire
Not sure if you are in District 1?
Here are two ways to find out.
LA Department of State Locator
Maps!
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Important New Orleans City Council Energy Efficiency Hearing June 25, 1 PM
A new city-wide proposal to address rising energy costs through energy efficiency will come before the City Council Utility Committee in a public hearing on Wednesday, June 25th at 1pm in the City Council Chambers. Your voice is important - please come to share your concerns and show your support for energy efficiency.
The cost of energy, rising for years, has been one of the more vexing issues for New Orleans residents and businesses since Katrina. Entergy New Orleans has just announced that natural gas prices are set to spike once again this summer. These costs will be passed on to us in the form of higher bills, through a fuel adjustment charge for metered electricity use and metered gas. In the face of this daunting situation, we are not powerless.
The solution is energy efficiency. A great deal of what we pay on our utility bill is essentially wasted energy. Improving the energy performance of our homes dramatically reduces energy bills. Unfortunately, a twisted catch-22 stands in the way for those struggling to afford their energy bills: while efficiency could save money on energy costs, high monthly bills leave nothing left over to make the necessary efficiency improvements.
The Energy Smart program currently before the City Council solves this problem with:
Direct consultation on high impact energy efficiency options based on a detailed inspection of the energy issues in your home or business.
Financing for efficiency improvements paid directly out of the energy savings, which requires no upfront money.
A list of qualified contractors and an independent quality assurance inspection once the work is done.
The program is supported in two ways. A system benefit charge of 1 mil / kWh (one tenth of a cent) is paid by all utility customers, which provides for the creation and administration of the program, consultations and quality assurance, contractor training and certification, and low income services. For the average residential customer, the cost works out to be about $1 / month (equal to the savings from replacing one frequently used incandescent light with a compact fluorescent bulb). The energy efficiency home improvements use private capital financing paid directly out of the energy savings. The program is designed to improve 2,800 homes each year with individual expected energy savings between 20-30%.
The substantial savings for improved homes is further enhanced by the city-wide savings from reducing use of high price energy during times of peak demand. All customers in the city benefit from lower peak energy prices when total consumption drops. Instead of throwing our money down a hole, with the utility company reaping the benefits, we should be lowering our utility bills while investing in the value of our homes.
Please show your support for the Energy Smart program on Wednesday, June 25th at 1pm in the City Council Chambers.
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The Alliance for Affordable Energy
& The Home Builders Association of Greater New Orleans present the
2nd Annual BuildSmart Expo
at The New Orleans Home & Garden Show.
click for more information
When: February 28 – March 2
Where: Louisiana Superdome
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SUCCESS!
Step It Up and
SecondLine to the Superdome! 
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Arial photograph of the marcher's message at the Superdome.
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*****
Entergy wants to
convert their Little Gypsy power plant to
Burn dirty coal and
make you pay for it!!
Entergy wants you to pay
for their new power plant in advance
Normally a utility would build their generating plant and then charge the consumer for the electricity they produce. Entergy wants to charge their customers in advance for their $1.5 billion power plant.
Entergy will cause even more Global Warming
By burning dirty coal instead of natural gas, Entergy will produce more Global Warming pollution which means more powerful hurricanes, rising seas, droughts and hotter weather.
Entergy's new coal plant will pollute
By burning dirty coal instead of natural gas as it does now, Entergy will put out more pollutants that cause heart and lung damage, cancer, and nerve damage in children.
You can tell the
Public Service Commission to say NO to Entergy
The Public Service Commission is elected to see that utilities safely provide reliable electricity at a reasonable price, and guarantees them a profit. By switching to dirtier fuels like coal, Entergy makes you & your family less safe by harming our health and by causing more Global Warming. Entergy puts us at risk for higher future prices because Congress will pass carbon taxes and other ways of coping with Global Warming.
The PSC can tell Entergy to switch to clean renewable energy like wind and solar instead of to dirty coal.
Call them at (800) 256-2397
and 225-342-4404 or 225-342-2831 (Fax)
Say, “Tell the commissioners to say no to Dirty Coal Power!”
Write them via the web at www.SayYesToCleanEnergy.org
First report!
From the Event oposing Entergy's application in Baton Rouge October 11
Karen Wimpleberg, Chair of the Alliance for Affordable Energy waits to speak to the press. The event was held to oppose Entergy's application to convert their Little Gypsy power plant from burning natural gas to burning coal. (A fuller description will follow.)
For More Info, call the Alliance (504) 208-9761
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